Competitive newsvendor problems with the same Nash and Stackelberg solutions |
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Authors: | Yasemin Serin |
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Affiliation: | Department of Industrial Engineering, Middle East Technical University, Ankara, Turkey |
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Abstract: | Consider two newsvendors: (i) they compete satisfying substitutable demands searching Nash equilibrium or (ii) one is the leader deciding first, the other responds optimally playing a Stackelberg game. The leader profits more than she does in (i). We present conditions under which the leader's profit does not improve from (i) to (ii). |
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Keywords: | Competitive newsvendor problem Nash equilibrium Stackelberg game |
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