Supply function equilibria are used in the analysis of divisible good auctions with a large number of identical objects to be sold or bought. An important example occurs in wholesale electricity markets. Despite the substantial literature on supply function equilibria the existence of a pure strategy Nash equilibria for a uniform price auction in asymmetric cases has not been established in a g...

Transmission constraints limit competition and arbitrageurs’ possibilities of exploiting price differences between commodities in neighbouring markets. We analyze radial transmission-constrained networks with local demand shocks, where spatially distributed oligopoly producers compete with supply functions, as in wholesale electricity markets. We prove existence and uniqueness of supply-functio...

In this paper, we study an outsourced supply chain consisting of one buyer and two suppliers in which the buyer outsources manufacturing of a physical product to two competing suppliers. The suppliers compete for the buyers' demands share, and the buyer allocates the demands to the competing suppliers based on three-dimensional allocation functions. We consider two certain types of allocation f...

the strategic pricing decisions of assembly products in assembly products supply chain are studied in this paper. firstly, a two-stage assembly products supply chain model is developed. by building nash game model, the nash equilibrium solution of pricing strategy of supplier and assemblers is obtained. next, a union decision model is built to analyze the optimal combination pricing strategy of...

In this paper we consider a supply function model of an electricity market where strategic firms have capacity constraints. We show that if firms have heterogeneous cost functions and capacity constraints then the differential equation approach to finding the equilibrium supply function may not be effective by itself because it produces supply functions that fail to be non-decreasing. Even when...

Supply function equilibrium (SFE) is often used to describe the behavior of generating companies in electricity markets. However, comprehensive analytical description of supply function models is rarely available in the literature. In this paper, using some analytical calculations, a novel direct approach is proposed to compute the Nash equilibrium (NE) of the supply function model under unifor...

This article aims to propose the short-term cost-based pricing method of supply chain network with the consideration of value-added tax (VAT) and corporate income tax. First, the average cost function of each business unit in supply chain network is given, and the average cost function is taken as the monotone mapping in n-dimensional space. According to Kantorovich theorem, the existence and u...

This paper investigates the impact of provided service by the retailers and manufacturers on customers’ demand and members’ profit in a supply chain. It focuses on a supply chain structure with one manufacturer and a common retailer. The demand of customers depends on retailer price and service level. A game-theoretic framework is applied to obtain the equilibrium solutions for each entity in s...