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Stackelberg game models between two competitive retailers in fuzzy decision environment

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Abstract

In this paper, we study the pricing problem in a fuzzy supply chain that consists of a manufacturer and two competitive retailers. There is a single product produced by a manufacturer and then sold by two competitive retailers to the consumers. The manufacturer acting as a leader determines the wholesale price, and the retailers acting as the followers set their sale prices independently. Both the manufacturing cost and the demand for product are characterized as fuzzy variables, we analyze how the manufacturer and the retailers make their pricing decisions with the duopolistic retailers’ different behaviors: competition strategy and collusion strategy, and develop the expected value models in this paper. Finally, numerical examples illustrate the effectiveness of the proposed two-echelon models using fuzzy set theory.

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Acknowledgments

The authors are very grateful to the anonymous reviewers for their insightful and constructive comments and suggestions that have led to an improved version of this paper. The work was supported by the National Natural Science Foundation of China (Nos. 71071161 and 61273209).

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Authors and Affiliations

  1. Antai School of Economics and Management, Shanghai Jiaotong University, Shanghai, 200052, China

    Shukuan Liu & Zeshui Xu

  2. College of Sciences, PLA University of Science and Technology, Nanjing, 210007, China

    Zeshui Xu

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  1. Shukuan Liu
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  2. Zeshui Xu
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Correspondence to Zeshui Xu.

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Liu, S., Xu, Z. Stackelberg game models between two competitive retailers in fuzzy decision environment. Fuzzy Optim Decis Making 13, 33–48 (2014). https://doi.org/10.1007/s10700-013-9165-x

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