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《Systems Engineering》 2006-11
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A Stackelberg Game of Profit Division in Supply Chains with Dominant Firms

ZHANG Gui-lei,LIU Zhi-xue(School of Management,Huazhong University of Science and Technology,Wuhan 430074,China)  
This paper considers a two-stage supply chain consisting of a supplier and a retailer and establishes Stackelberg games of profit division.Revenue sharing contracts are employed in the games as a profit division approach.Equilibrium analysis shows that the dominate firm can only get the reserved profit,while the dominant firm can obtain all the profit leaved.And the parameters made by the dominant firm can coordinate the supply chain to the optimal level.However,(if the) dominant firm gives up the dominating chance,his profit will decrease and the supply chain will also operate(inefficiently.)
【Fund】: 国家自然科学基金重点资助项目(70332001)
【CateGory Index】: F274;F275;F224.32
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