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Bargaining on supply chain networks with heterogeneous valuations

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  • Elif Özcan-Tok

    (Central Bank of the Republic of Turkey)

Abstract

In this paper, we generalize the two-sided bargaining model which is developed in Manea (Am Econ Rev 101(5):2042–2080, 2011) to analyse the trade dynamics in supply chains. No further restrictions on the network structure are imposed. Both buyers and sellers can assume the role of a proposer in the bargaining game. Any finite number of buyers and sellers is allowed. More importantly, valuations of the buyers are heterogeneous. This generalized model allows us to investigate the impact of network structure and the heterogeneous pie size (resulting from heterogeneous valuations) on the equilibrium in full generality which is lack in the existing supply chain literature.

Suggested Citation

  • Elif Özcan-Tok, 2020. "Bargaining on supply chain networks with heterogeneous valuations," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(2), pages 506-525, July.
    • Handle: RePEc:spr:topjnl:v:28:y:2020:i:2:d:10.1007_s11750-020-00540-7
    DOI: 10.1007/s11750-020-00540-7
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    More about this item

    Keywords

    Bargaining; Heterogeneity; Networks; Supply chain;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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