Dynamic Competitive Newsvendors with Service-Sensitive Demands

• Published in: Manufacturing & service operations management Vol. 9; no. 1; pp. 84 - 93
• Main Authors: Liu, Liming, Shang, Weixin, Wu, Shaohua
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.01.2007; Institute for Operations Research and the Management Sciences
• Series: Manufacturing & Service Operations Management
• Subjects: availability competition; Competition; Customer services; Demand; demand model; dynamic game; Equilibrium; feedback Nash equilibrium; Market shares; Mathematical models; order quantity structure; service-sensitive demand; stationary policy; Studies; Vendors

When two firms compete for service-sensitive demands based on their product availability, their actions will affect the future market share reallocation. This problem was first studied by Hall and Porteus (2000) using a dynamic game model. We extend their work by incorporating a general demand model...