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| Stable Structure of Coalitions with Farsighted Suppliers of Complementary Components under Competing Retail Product Portfolio |
| XIAO Dan，NIE Shanshan，ZHOU Yongwu |
| 1. Guangzhou University, Guangzhou, China; 2. South China University of Technology, Guangzhou, China |
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Abstract Consider a two-echelon supply chain system consisting of four complementary products of farsighted suppliers A, 1, 2 and C and a single retailer. Based on the concept of the largest consistent set(LCS), we explore the farsighted stable structure of the joint selling coalition, in which some of suppliers are replaceable each other. The results show that: with less costs difference between the suppliers, farsighted suppliers would prefer to sell separately to the downstream retailers where the competition of two types of product portfolios is less intense. On the other hand, if the intensity of retail competition between the two product portfolios is high, the farsighted suppliers would prefer to form a large alliance of three suppliers selling jointly. In addition, when the cost difference between suppliers is large, farsighted suppliers would prefer to form a joint selling grand coalition or sell them individually to downstream retailer. However, the joint sales coalition formed by two suppliers is not farsighted stability.
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Received: 11 January 2021
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