I study the ability of competing retailers to form a cartel by sharing information with their mutual manufacturer. In a market characterized by demand uncertainty, colluding retailers wish to share information about the potential market demand in order to coordinate on the optimal collusive retail price. Since direct information sharing between the retailers is viewed by antitrust authorities a...

This paper is based on observations that competing retailers have the option of either agreeing in advance to transship excess inventory to each other or seeing unsatisfied customers switch to the competitor for a substitute. A transshipment game and a substitution game between competing retailers is studied. After establishing the existence and uniqueness of a pure-strategy Nash Equilibrium in...

W e analyze contracting behaviors in a two-tier supply chain system consisting of competing manufacturers and competing retailers. We contrast the contracting outcome of a Stackelberg game, in which the manufacturers offer take-itor-leave-it contracts to the retailers, with that of a bargaining game, in which the firms bilaterally negotiate contract terms via a process of alternating offers. Th...

Loss Leading pricing is often referred to as an advertising strategy which allows retailers to attract consumers by subsidizing some products and make profits from other items; in this way, below-cost pricing may improve consumer welfare by compensating consumers for their lack of information. This paper shows that large retailers can instead use loss leading as an exploitative device at the de...

In this paper we consider a duopoly two-stage duopoly where firms first decide whether to invest in advertising and then compete in prices. Advertising has two effects: a market enlargement for both firms and a predatory gain for the investing firm only. Both symmetric and asymmetric equilibria may arise. The two most interesting cases are a coordination game where both firms investing and non-...

Results of game theory are often the keys to decisions of economical and political executives. They are also used to create internal tools of many decision making software. For example, coordination games may be cooperative games, when the players choose the strategies by a consensus decision making process, and game trees are used to represent some key cooperative games. Our theory of cooperat...

as one of the most important components of a nations basic facilities, the networking of the library plays a vital role in terms of promoting the sharing of access to information. although the traditional methods of literature indexing and accessing will continue to exist and develop, library networking will become the new model and the direction for the development of the library. through the ...

Cognitive Radio is gaining popularity and acceptance all over the world as an efficient way to utilise the limited wireless spectrum resources. Out of the many design requirements of Cognitive Radio such as spectrum sensing, spectrum allocation, power control etc., spectrum sharing is one of main challenges to ensure peaceful co-existence of the primary and secondary users. Since multiple users...

This paper presents a theory of vertical most favored nation clauses (MFNs) and then applies the theory to the credit card industry. A vertical MFN is a restraint that an upstream supplier imposes on a retailer that prevents the retailer from charging more for the supplier’s product than for the products of rival suppliers. In the market for credit card services, this restraint takes the form o...

This study considers a supply chain that consists of n retailers, each of them facing a newsvendor problem, and a supplier. Groups of retailers might increase their expected joint profit by joint ordering and inventory centralization. However, we assume that the retailers impose some level of stock that should be dedicated to them. In this situation, we show that the associated cooperative game...