A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain Partners
Joint Authors
Fatemi Ghomi, S. M. T.
Kafi, F.
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-13
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
There is a rising trend in supplying chain management to employ simultaneous cooperation and competition (coopetition) among supply chain partners as an efficient strategy to create value.
There exist, however, few models which analyze coopetitive situations mathematically.
Cooperative game theory is the common tool in analyzing cooperative situations.
However, the term “cooperative” in “cooperative game theory” is absolutely misleading since it ultimately leads to competition analysis and ignores the internal structure of the cooperation.
Coopetition, however, results in structural transformations in players.
Therefore, we require a mathematical modeling approach which takes into account the internal structural changes due to cooperation among competitors.
In so doing, in this paper we propose, we assume that those parameters of each firm’s profit function are subject to transformation by cooperation as a function of cooperation level so as to determine the right level of cooperation and production of firms while considering technical cooperation between them.
Furthermore, we demonstrate the results of applying the idea to a supply chain situation where two similar suppliers participate.
We conclude that under intuitive conditions coopetition strategy is superior to the pure competitive relationship between the suppliers in terms of profitability which validates the previous empirical results mathematically.
American Psychological Association (APA)
Kafi, F.& Fatemi Ghomi, S. M. T.. 2014. A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain Partners. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-496110
Modern Language Association (MLA)
Kafi, F.& Fatemi Ghomi, S. M. T.. A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain Partners. Mathematical Problems in Engineering No. 2014 (2014), pp.1-10.
https://search.emarefa.net/detail/BIM-496110
American Medical Association (AMA)
Kafi, F.& Fatemi Ghomi, S. M. T.. A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain Partners. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-496110
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-496110