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The Potential of Cooperative Game Theory for Supply Chain Management

In: Research Methodologies in Supply Chain Management

Author

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  • Jörn-Henrik Thun

    (Industrieseminar der Universität Mannheim)

Abstract

Summary In this paper Supply Chain Management will be analyzed in the light of Game Theory. The aim of the paper is to show the applicability of Cooperative Game Theory as methodology for analyzing supply chains. A main characteristic of a supply chain is cooperation. The success and sustainability of cooperation depends on the stability as constituting element. Cooperation can be analyzed with Cooperative Game Theory. The Shapley-Value is used as algorithm to allocate the profit among the cooperating partner. But for supply chains the structure is relevant. The Myerson-Value takes the structure of a game into account when formulating a specific allocation rule. Cooperative game theory can be applied as methodology for Supply Chain Management contributing an allocation algorithm.

Suggested Citation

  • Jörn-Henrik Thun, 2005. "The Potential of Cooperative Game Theory for Supply Chain Management," Springer Books, in: Herbert Kotzab & Stefan Seuring & Martin Müller & Gerald Reiner (ed.), Research Methodologies in Supply Chain Management, pages 477-491, Springer.
    • Handle: RePEc:spr:sprchp:978-3-7908-1636-5_31
    DOI: 10.1007/3-7908-1636-1_31
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    Cited by:

    1. J. Zambujal-Oliveira, 2021. "Supply Chain Innovation Research: A Conceptual Approach of Information Management with Game Theory," Group Decision and Negotiation, Springer, vol. 30(2), pages 377-394, April.
    2. Faße, Anja & Grote, Ulrike & Winter, Etti, 2009. "Value chain analysis Methodologies in the context of environment and trade research," Hannover Economic Papers (HEP) dp-429, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Yan, Nina & Zhang, Yaping & Xu, Xun & Gao, Yongling, 2021. "Online finance with dual channels and bidirectional free-riding effect," International Journal of Production Economics, Elsevier, vol. 231(C).

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