Entry game in supply chains with yield uncertainty

Yield uncertainty presents great challenges to supply chain management, which affects market and thus the profits of all parties. In context a comprising retailer multiple potential suppliers with random yields, we examine impact yield on suppliers' entry decisions, how it retailer's profit consumer surplus. We find that initially increases number entering market, then decreases, is negatively correlated also analyze purchasing price strategy influences decisions enter market. subsidies can improve performance coordinate chain. addition, subsidy contract in forms production surplus when do not make respectively.