The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain
We construct dynamic Bertrand-Stackelberg pricing models including two manufacturers and a common retailer in a risk-averse supply chain with the uncertain demand. The risk-averse supply chain follows these strategies: Bertrand game between the two manufacturers and Stackelberg game between the manu...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/749769 |
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| _version_ | 1832556563968032768 |
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| author | Junhai Ma Qiuxiang Li |
| author_facet | Junhai Ma Qiuxiang Li |
| author_sort | Junhai Ma |
| collection | DOAJ |
| description | We construct dynamic Bertrand-Stackelberg pricing models including two manufacturers and a common retailer in a risk-averse supply chain with the uncertain demand. The risk-averse supply chain follows these strategies: Bertrand game between the two manufacturers and Stackelberg game between the manufacturer and the retailer. We study the effect of the price adjustment speed, the risk preference, and the uncertain demand on the stability of the risk-averse supply chain using bifurcation, power spectrum, attractor, and so forth. It is observed that there exists slip bifurcation when the price adjustment speed across some critical value, the stable region, and total profit of the risk-averse supply chain will increase with increase of RM1 and decrease with increase of σ. The profit of the supply chain and the two manufacturers will decrease and the weaker (retailer) is a beneficiary when the supply chain is in chaos. The fluctuation in the supply chain can be gradually controlled by the control of the price adjustment speed. |
| format | Article |
| id | doaj-art-99c4f22eec864e658e4d6f75eaedb89d |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-99c4f22eec864e658e4d6f75eaedb89d2025-02-03T05:45:00ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/749769749769The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply ChainJunhai Ma0Qiuxiang Li1College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaWe construct dynamic Bertrand-Stackelberg pricing models including two manufacturers and a common retailer in a risk-averse supply chain with the uncertain demand. The risk-averse supply chain follows these strategies: Bertrand game between the two manufacturers and Stackelberg game between the manufacturer and the retailer. We study the effect of the price adjustment speed, the risk preference, and the uncertain demand on the stability of the risk-averse supply chain using bifurcation, power spectrum, attractor, and so forth. It is observed that there exists slip bifurcation when the price adjustment speed across some critical value, the stable region, and total profit of the risk-averse supply chain will increase with increase of RM1 and decrease with increase of σ. The profit of the supply chain and the two manufacturers will decrease and the weaker (retailer) is a beneficiary when the supply chain is in chaos. The fluctuation in the supply chain can be gradually controlled by the control of the price adjustment speed.http://dx.doi.org/10.1155/2014/749769 |
| spellingShingle | Junhai Ma Qiuxiang Li The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain Discrete Dynamics in Nature and Society |
| title | The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain |
| title_full | The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain |
| title_fullStr | The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain |
| title_full_unstemmed | The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain |
| title_short | The Complex Dynamics of Bertrand-Stackelberg Pricing Models in a Risk-Averse Supply Chain |
| title_sort | complex dynamics of bertrand stackelberg pricing models in a risk averse supply chain |
| url | http://dx.doi.org/10.1155/2014/749769 |
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