Cooperative network flow problem with pricing decisions and allocation of benefits: A game theory approach
Authors
Abstract:
Several real problems in telecommunication, transportation, and distribution industries can be well analyzed by network flow models. In revenue management, pricing plays a primary role which increases the profit generated from a limited supply of assets. Pricing decision directly affects the amount of service or product demand. Hence, in traditional maximum flow problem, we assume that the demand of sink nodes depends on price of services or products of that nodes. We first develop a mathematical programming model for decision making of pricing by multiple owners in the maximum flow problem. Afterwards, coalitions between owners will be analyzed via different methods of cooperative game theory. A numerical example is given in order to show how these methods suggest appropriate assignments of extra revenue obtained from the cooperation among the owners.
similar resources
A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach
Coordinating the supply chain is among the most important subjects that is extensively addressed in the related literature. If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed ...
full textCooperative aggregate production planning: a game theory approach
Production costs in general, and workforce and inventory costs in particular, constitute a large fraction of the operating costs of many manufacturing plants. We introduce cooperative aggregate production planning as a way to decrease these costs. That is, when production planning of two or more facilities (plants) is integrated, they can interchange workforce and products inventory; thus, thei...
full textPricing and Advertising Decisions in a Three-level Supply Chain with Nash, Stackelberg and Cooperative Games
Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...
full textA game Theoretic Approach to Pricing, Advertising and Collection Decisions adjustment in a closed-loop supply chain
This paper considers advertising, collection and pricing decisions simultaneously for a closed-loop supplychain(CLSC) with one manufacturer(he) and two retailers(she). A multiplicatively separable new demand function is proposed which influenced by pricing and advertising. In this paper, three well-known scenarios in the game theory including the Nash, Stackelberg and Cooperative games are expl...
full textMy Resources
Journal title
volume 9 issue special issue on supply chain
pages 73- 87
publication date 2016-01-01
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023