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On the Stability of Coalitions in Supply Chain Networks via Generalized Complementarity Conditions

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  • Laura Scrimali

    (University of Catania)

Abstract

In this paper, we consider a supply chain network model that consists of three layers of decision-makers, namely, suppliers, manufacturers and retailers, with prices and shipments that evolve in time. We focus on the vertical integration of the levels of the supply chain and consider the retailer as the dominant player of the coalition. We give a novel reformulation of the evolutionary variational inequality related to the equilibrium conditions underlying the model. This approach, based on complementarity conditions, allows us to analyze the Lagrange multipliers associated with production capacities to understand better market’s trend. We study the behavior of marginal profits and provide some results for the efficiency and the stability of the coalitions. We apply our theoretical achievements to a duopolistic model.

Suggested Citation

  • Laura Scrimali, 2022. "On the Stability of Coalitions in Supply Chain Networks via Generalized Complementarity Conditions," Networks and Spatial Economics, Springer, vol. 22(2), pages 379-394, June.
    • Handle: RePEc:kap:netspa:v:22:y:2022:i:2:d:10.1007_s11067-019-09461-w
    DOI: 10.1007/s11067-019-09461-w
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    References listed on IDEAS

    as
    1. Hannan Amoozad Mahdiraji & Kannan Govindan & Edmundas Kazimieras Zavadskas & Seyed Hossein Razavi Hajiagha, 2014. "Coalition or decentralization: a game-theoretic analysis of a three-echelon supply chain network," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(3), pages 460-485, June.
    2. A. Maugeri & F. Raciti, 2010. "Remarks on infinite dimensional duality," Journal of Global Optimization, Springer, vol. 46(4), pages 581-588, April.
    3. Laura Scrimali, 2012. "Infinite Dimensional Duality Theory Applied to Investment Strategies in Environmental Policy," Journal of Optimization Theory and Applications, Springer, vol. 154(1), pages 258-277, July.
    4. Patrizia Daniele & Sofia Giuffrè & Mariagrazia Lorino, 2016. "Functional inequalities, regularity and computation of the deficit and surplus variables in the financial equilibrium problem," Journal of Global Optimization, Springer, vol. 65(3), pages 575-596, July.
    5. Mehrdad Shahabi & Shirin Akbarinasaji & Avinash Unnikrishnan & Rachel James, 2013. "Integrated Inventory Control and Facility Location Decisions in a Multi-Echelon Supply Chain Network with Hubs," Networks and Spatial Economics, Springer, vol. 13(4), pages 497-514, December.
    6. Giorgia Oggioni & Yves Smeers & Elisabetta Allevi & Siegfried Schaible, 2012. "A Generalized Nash Equilibrium Model of Market Coupling in the European Power System," Networks and Spatial Economics, Springer, vol. 12(4), pages 503-560, December.
    7. Cheng-Chang Lin & Chao-Chen Hsieh, 2012. "A Cooperative Coalitional Game in Duopolistic Supply-Chain Competition," Networks and Spatial Economics, Springer, vol. 12(1), pages 129-146, March.
    8. Laura Scrimali & Cristina Mirabella, 2018. "Cooperation in pollution control problems via evolutionary variational inequalities," Journal of Global Optimization, Springer, vol. 70(2), pages 455-476, February.
    9. Patrizia Daniele & Antonino Maugeri & Anna Nagurney, 2017. "Cybersecurity Investments with Nonlinear Budget Constraints: Analysis of the Marginal Expected Utilities," Springer Optimization and Its Applications, in: Nicholas J. Daras & Themistocles M. Rassias (ed.), Operations Research, Engineering, and Cyber Security, pages 117-134, Springer.
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