A Game Analysis of Cooperative Relationship Between Enterprises on Supply Chain

Cooperation is the essence of supply chain. All members of the supply chain cooperate and band together to create more value than that of each member can do, and to realize the whole value of supply chain, which is far greater than the simple sum of every link value. Cooperative efforts and collaborations between these enterprises make it easier to realize the whole benefit of supply chain and to improve their competitive ability. The relationships among these members or enterprises have direct link to the efficiency and benefit of supply chain. But it is dynamic and unstable, and often causes the instability of supply chain. So it is very important to analyze and management their cooperative relationship. In this essay, we try to use game theory to study the cooperative relationship between enterprises on supply chain. By studying the game theory, we try to establish the game model of their cooperative relationship, and then discuss the existence of equilibrium in this game. We also try to resolve two problems: how to establish stable cooperativerelationship and how to make it helpful to supply chain.