Investing in a Shared Supplier in a Competitive Market: Stochastic Capacity Case
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Online appendix for “Investing in a shared supplier in a competitive market: Stochastic capacity case”
a−c−bq1 2b if a−c−bq1 2b < (0 2 + k2)ξ, (0 2 + k2)ξ if a−c−bq1 2b ≥ (0 2 + k2)ξ. Solving for the intersection of the best response functions q 1(q2) and q ∗ 2(q1), we can obtain the equilibrium order quantities and hence the equilibrium profits shown in Lemma 1. Discussion about when a−c 3b( k0 2 +k2) > 1. We observe that when a−c 3b( k0 2 +k2) > 1, there are two cases. Case 1. When a−c b( 3k...
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ژورنال
عنوان ژورنال: Production and Operations Management
سال: 2015
ISSN: 1059-1478
DOI: 10.1111/poms.12348