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Study of Value-allocation of Supply chain——Game Analysis of Pricing of Intermediate Products |
DU Yi-Fei, LI Shi-Ming |
University of Electronic Science and Technology of China,Chengdu,China |
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Abstract A game of how to price intermediate product in the basic two-firm supply chain was studied. How to ascertain the price of intermediate product respectively was discussed under the conditions that the leading firm has dominant right of pricing of intermediate product and that the supplying firm has the right. By assuming and calculating a model, it was concluded that who has the dominant right of pricing intermediate product will win more profit. The sum of two firms' profit and the industrial chain maximal profits were compared.It was found that the former is smaller than latter in two conditions.
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Received: 27 July 2004
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