IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v85y2019icp103-114.html
   My bibliography  Save this article

Competition for blood donations

Author

Listed:
  • Nagurney, Anna
  • Dutta, Pritha

Abstract

In this paper, we focus on the blood services industry in the US, which is undergoing major changes, including a rise in competition, and we develop a novel game theory model for blood donations among blood service organizations in which the organizations seek to maximize their transaction utilities and compete on the quality of service that they provide at the blood collection sites in different regions. The governing equilibrium concept is that of Nash Equilibrium. We formulate the equilibrium as a variational inequality problem and prove the existence of the equilibrium quality level service pattern. We also provide conditions for uniqueness and present a Lagrange analysis and interpretation associated with the lower and upper bounds on the quality service levels. An algorithm with nice features for computations is proposed and then applied to numerical examples of increasing complexity. The results demonstrate that enhanced competition can improve the quality service level and that blood service organizations can also benefit from having collection sites in multiple regions.

Suggested Citation

  • Nagurney, Anna & Dutta, Pritha, 2019. "Competition for blood donations," Omega, Elsevier, vol. 85(C), pages 103-114.
    • Handle: RePEc:eee:jomega:v:85:y:2019:i:c:p:103-114
    DOI: 10.1016/j.omega.2018.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030504831731188X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2018.06.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hassan Al‐Zubaidi & Dalal Al‐Asousi, 2012. "Service quality assessment in central blood bank: blood donors’ perspective," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 28(1), pages 28-38, January.
    2. Craig, Ashley C & Garbarino, Ellen & Heger, Stephanie A. & Slonim, Robert, 2014. "Waiting To Give," IZA Discussion Papers 8491, Institute of Labor Economics (IZA).
    3. Nicola Lacetera & Mario Macis & Robert Slonim, 2012. "Will There Be Blood? Incentives and Displacement Effects in Pro-social Behavior," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 186-223, February.
    4. Fahimnia, Behnam & Jabbarzadeh, Armin & Ghavamifar, Ali & Bell, Michael, 2017. "Supply chain design for efficient and effective blood supply in disasters," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 700-709.
    5. Andres F. Osorio & Sally C. Brailsford & Honora K. Smith & Sonia P. Forero-Matiz & Bernardo A. Camacho-Rodríguez, 2017. "Simulation-optimization model for production planning in the blood supply chain," Health Care Management Science, Springer, vol. 20(4), pages 548-564, December.
    6. Ashley C. Craig & Ellen Garbarino & Stephanie A. Heger & Robert Slonim, 2017. "Waiting To Give: Stated and Revealed Preferences," Management Science, INFORMS, vol. 63(11), pages 3672-3690, November.
    7. Anna Nagurney & Amir Masoumi & Min Yu, 2012. "Supply chain network operations management of a blood banking system with cost and risk minimization," Computational Management Science, Springer, vol. 9(2), pages 205-231, May.
    8. Wildman, John & Hollingsworth, Bruce, 2009. "Blood donation and the nature of altruism," Journal of Health Economics, Elsevier, vol. 28(2), pages 492-503, March.
    9. Anup Malani & Tomas Philipson & Guy David, 2003. "Theories of Firm Behavior in the Nonprofit Sector. A Synthesis and Empirical Evaluation," NBER Chapters, in: The Governance of Not-for-Profit Organizations, pages 181-216, National Bureau of Economic Research, Inc.
    10. Carl Mellström & Magnus Johannesson, 2008. "Crowding Out in Blood Donation: Was Titmuss Right?," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 845-863, June.
    11. Andres F. Osorio & Sally C. Brailsford & Honora K. Smith, 2015. "A structured review of quantitative models in the blood supply chain: a taxonomic framework for decision-making," International Journal of Production Research, Taylor & Francis Journals, vol. 53(24), pages 7191-7212, December.
    12. Babak Abbasi & Golnaz Vakili & Stuart Chesneau, 2017. "Impacts of Reducing the Shelf Life of Red Blood Cells: A View from Down Under," Interfaces, INFORMS, vol. 47(4), pages 336-351, August.
    13. Edward L. Glaeser, 2003. "The Governance of Not-for-Profit Organizations," NBER Books, National Bureau of Economic Research, Inc, number glae03-1, March.
    14. Dillon, Mary & Oliveira, Fabricio & Abbasi, Babak, 2017. "A two-stage stochastic programming model for inventory management in the blood supply chain," International Journal of Production Economics, Elsevier, vol. 187(C), pages 27-41.
    15. Ramezanian, Reza & Behboodi, Zahra, 2017. "Blood supply chain network design under uncertainties in supply and demand considering social aspects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 69-82.
    16. Susan Rose-Ackerman, 1982. "Charitable Giving and “Excessive†Fundraising," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(2), pages 193-212.
    17. Nagurney, Anna & Flores, Emilio Alvarez & Soylu, Ceren, 2016. "A Generalized Nash Equilibrium network model for post-disaster humanitarian relief," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 1-18.
    18. Li, Dong & Nagurney, Anna & Yu, Min, 2018. "Consumer learning of product quality with time delay: Insights from spatial price equilibrium models with differentiated products," Omega, Elsevier, vol. 81(C), pages 150-168.
    19. Janssen, Maarten C. W. & Mendys-Kamphorst, Ewa, 2004. "The price of a price: on the crowding out and in of social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 377-395, November.
    20. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    21. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2017. "Mergers and acquisitions in blood banking systems: A supply chain network approach," International Journal of Production Economics, Elsevier, vol. 193(C), pages 406-421.
    22. Osorio, Andres F. & Brailsford, Sally C. & Smith, Honora K., 2018. "Whole blood or apheresis donations? A multi-objective stochastic optimization approach," European Journal of Operational Research, Elsevier, vol. 266(1), pages 193-204.
    23. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2012. "A supply chain generalized network oligopoly model for pharmaceuticals under brand differentiation and perishability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 762-780.
    24. 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.
    25. Stewart, Hamish, 1992. "Rationality and the market for human blood," Journal of Economic Behavior & Organization, Elsevier, vol. 19(2), pages 125-143, October.
    26. Duan, Qinglin & Liao, T. Warren, 2014. "Optimization of blood supply chain with shortened shelf lives and ABO compatibility," International Journal of Production Economics, Elsevier, vol. 153(C), pages 113-129.
    27. Jeremy Thornton, 2008. "Competition, Contractibility, and the Market for Donors to Nonprofits," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 24(1), pages 215-246, May.
    28. Beliën, Jeroen & Forcé, Hein, 2012. "Supply chain management of blood products: A literature review," European Journal of Operational Research, Elsevier, vol. 217(1), pages 1-16.
    29. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Longfei He & Qinxu Gu & Junsong Bian & Kin Keung Lai & Xiao Zhang, 2023. "To Pool or Not to Pool in Carbon Quotas: Analyses of Emission Regulation and Operations in Supply Chain Supernetwork under Cap-and-Trade Policy," Annals of Operations Research, Springer, vol. 324(1), pages 311-353, May.
    2. Xiaowei Hu & Peng Li, 2021. "Relief and Stimulus in A Cross-sector Multi-product Scarce Resource Supply Chain Network," Papers 2101.09373, arXiv.org, revised Nov 2022.
    3. Nagurney, Anna, 2021. "Supply chain game theory network modeling under labor constraints: Applications to the Covid-19 pandemic," European Journal of Operational Research, Elsevier, vol. 293(3), pages 880-891.
    4. Iana Shaheen & Arash Azadegan & Donna F. Davis, 2023. "Resource Scarcity and Humanitarian Social Innovation: Observations from Hunger Relief in the Context of the COVID-19 Pandemic," Journal of Business Ethics, Springer, vol. 182(3), pages 597-617, January.
    5. Esmaeili, Somayeh & Bashiri, Mahdi & Amiri, Amirhossein, 2023. "An exact criterion space search algorithm for a bi-objective blood collection problem," European Journal of Operational Research, Elsevier, vol. 311(1), pages 210-232.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anna Nagurney & Pritha Dutta, 2019. "Supply chain network competition among blood service organizations: a Generalized Nash Equilibrium framework," Annals of Operations Research, Springer, vol. 275(2), pages 551-586, April.
    2. Donya Rahmani, 2019. "Designing a robust and dynamic network for the emergency blood supply chain with the risk of disruptions," Annals of Operations Research, Springer, vol. 283(1), pages 613-641, December.
    3. Meneses, Maria & Santos, Daniel & Barbosa-Póvoa, Ana, 2023. "Modelling the Blood Supply Chain," European Journal of Operational Research, Elsevier, vol. 307(2), pages 499-518.
    4. Hamdan, Bayan & Diabat, Ali, 2020. "Robust design of blood supply chains under risk of disruptions using Lagrangian relaxation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    5. Mohammad Reza Ghatreh Samani & Seyyed-Mahdi Hosseini-Motlagh, 2019. "An enhanced procedure for managing blood supply chain under disruptions and uncertainties," Annals of Operations Research, Springer, vol. 283(1), pages 1413-1462, December.
    6. Kamyabniya, Afshin & Noormohammadzadeh, Zohre & Sauré, Antoine & Patrick, Jonathan, 2021. "A robust integrated logistics model for age-based multi-group platelets in disaster relief operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    7. Samani, Mohammad Reza Ghatreh & Hosseini-Motlagh, Seyyed-Mahdi & Homaei, Shamim, 2020. "A reactive phase against disruptions for designing a proactive platelet supply network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    8. Diabat, Ali & Jabbarzadeh, Armin & Khosrojerdi, Amir, 2019. "A perishable product supply chain network design problem with reliability and disruption considerations," International Journal of Production Economics, Elsevier, vol. 212(C), pages 125-138.
    9. Ana Margarida Araújo & Daniel Santos & Inês Marques & Ana Barbosa-Povoa, 2020. "Blood supply chain: a two-stage approach for tactical and operational planning," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(4), pages 1023-1053, December.
    10. Mohammad Reza Ghatreh Samani & Seyyed-Mahdi Hosseini-Motlagh, 2021. "A robust framework for designing blood network in disaster relief: a real-life case," Operational Research, Springer, vol. 21(3), pages 1529-1568, September.
    11. Hosseini-Motlagh, Seyyed-Mahdi & Samani, Mohammad Reza Ghatreh & Homaei, Shamim, 2020. "Toward a coordination of inventory and distribution schedules for blood in disasters," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    12. Elmira Farrokhizadeh & Seyed Amin Seyfi-Shishavan & Sule Itir Satoglu, 2022. "Blood supply planning during natural disasters under uncertainty: a novel bi-objective model and an application for red crescent," Annals of Operations Research, Springer, vol. 319(1), pages 73-113, December.
    13. Gilani Larimi, Niloofar & Yaghoubi, Saeed & Hosseini-Motlagh, Seyyed-Mahdi, 2019. "Itemized platelet supply chain with lateral transshipment under uncertainty evaluating inappropriate output in laboratories," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    14. Tirkolaee, Erfan Babaee & Golpîra, Hêriş & Javanmardan, Ahvan & Maihami, Reza, 2023. "A socio-economic optimization model for blood supply chain network design during the COVID-19 pandemic: An interactive possibilistic programming approach for a real case study," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    15. Kees, M. Celeste & Bandoni, J. Alberto & Moreno, M. Susana, 2022. "A multi-period fuzzy optimization strategy for managing a centralized blood supply chain," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    16. Yuan Xu & Joseph Szmerekovsky, 2022. "A multi-product multi-period stochastic model for a blood supply chain considering blood substitution and demand uncertainty," Health Care Management Science, Springer, vol. 25(3), pages 441-459, September.
    17. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2017. "Mergers and acquisitions in blood banking systems: A supply chain network approach," International Journal of Production Economics, Elsevier, vol. 193(C), pages 406-421.
    18. Mohsen Momenitabar & Zhila Dehdari Ebrahimi & Mohammad Arani & Jeremy Mattson, 2023. "Robust possibilistic programming to design a closed-loop blood supply chain network considering service-level maximization and lateral resupply," Annals of Operations Research, Springer, vol. 328(1), pages 859-901, September.
    19. van Sambeeck, J.H.J. & van Brummelen, S.P.J. & van Dijk, N.M. & Janssen, M.P., 2022. "Optimal blood issuing by comprehensive matching," European Journal of Operational Research, Elsevier, vol. 296(1), pages 240-253.
    20. Javid Ghahremani-Nahr & Ramez Kian & Ehsan Sabet & Vahid Akbari, 2022. "A bi-objective blood supply chain model under uncertain donation, demand, capacity and cost: a robust possibilistic-necessity approach," Operational Research, Springer, vol. 22(5), pages 4685-4723, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:85:y:2019:i:c:p:103-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.