Loss of coordination in competitive supply chains

[摘要] (cont.) This occurs under the symmetric setting when there is a ;;reasonable;; number of Cournot retailers under intense competition, or when demand is ;;more;; inelastic in a Bertrand competition setting. As an example, in the presence of six Cournot retailers under intense competition, the profit loss is 2.04%, and when demand is perfectly inelastic in a Bertrand competition, the supply chain is perfectly coordinated with profit loss of 0%. For the multinomial logit demand case, we nd that higher predictability of consumer behaviour (i.e, when consumers;; choices are more deterministic) increases profits both under coordination and under competition, and a larger number of retailers decreases profits under competition, but 3 increases profits under coordination. The net result is that efficiency ;;deteriorates;; when the number of competitive retailers and predictability of consumer behaviour increases.

[发布机构] Massachusetts Institute of Technology