Author : Qi Feng
Publisher :
ISBN 13 :
Total Pages : 35 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Negotiations in Competitive Supply Chains by : Qi Feng
Download or read book Negotiations in Competitive Supply Chains written by Qi Feng and published by . This book was released on 2019 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Supply chain contract negotiation has gain increasing attentions in recent years, and the studies involving negotiations in the operations literature almost exclusively apply the concept of the Nash bargaining (NB) solution. The NB solution, however, is derived based on the axiom of independence of irrelevant alternatives (IIA), an unrealistic assumption widely criticized in economics. Indeed, our analysis suggests that the NB solution can lead to unreasonable negotiation outcomes in competing supply chains. As an alternative, the Kalai-Smorodinsky (KS) solution has been applied in many fields, but has not been introduced to the supply chain contexts. We apply the KS solution to study contract negotiations in competing supply chains, and analyze its connection to and difference from the NB solution. In particular, we show that, compared with the NB solution, the KS solution appropriately captures the negotiation power shift induced by the decision ownership, the negotiation sequence, the vertical relationship, the competition intensity, the contract contingency, and the contract type.