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Competitive newsvendor problems with the same Nash and Stackelberg solutions
Authors:Yasemin Serin
Affiliation:Department of Industrial Engineering, Middle East Technical University, Ankara, Turkey
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).
Keywords:Competitive newsvendor problem   Nash equilibrium   Stackelberg game
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