Cooperation and Competition in Linear Production and Sequencing Processes

We analyze applications of biform games to linear production (LP) and sequencing processes. Biform games, as introduced by Brandenburger Stuart (2007), apply problems in which strategic decisions are followed some cooperative game, where the specific environment game that is played, turn determined these decisions. extend work on LP-processes allowing firms compete for resources scarce or hard produce, rather than assuming resource bundles simply given. With strategy dependent can be obtained from two locations, we show induced has a (pure) Nash equilibrium, using Owen set any game-theoretic solution concept satisfies anonymity solve LP-game. To competition processes, no longer assume an initial processing order Instead, this strategically determined. Solving second-stage gain splitting rule, fully determine equilibria game.