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| Vertical R&D Alliance for Competing Supply Chains When Downstream Firms Are Leaders |
| MA Jianhua，AI Xingzheng，TANG Xiaowo |
| 1. Shenzhen University, Shenzhen，Guangdong, China;
2. University of Electronic Science and Technology of China, Chengdu, China |
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Abstract From the perspective of game theory, this paper constructs two competing supply chains, and each supply chain consists of one leadermanufacturer and one exclusive supplier. We explore the selection strategy for vertical R&D alliance with profit sharing contract. The results suggest that if market competition intensity is relatively low, or market competition intensity is moderate as well as R&D is efficient, vertical R&D alliance chaintochain competition will be the dominant equilibrium, which can make suppliers and manufacturers be better off. Numerical analysis shows that the feasible range of profit sharing for alliances shrinks as the competition intensity decreases or the R&D efficiency increases.
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Received: 07 August 2012
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2014, Vol. 11 
