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Game Theoretic Modeling of Horizontal Supply Chain Coopetition among Growers

Author

Listed:
  • Tiru Arthanari

    (Department of Information Systems and Operations Management, University of Auckland, Owen G Glenn Building, 12 Grafton Road, Auckland, New Zealand)

  • David Carfì

    (Department of Mathematics, University of California Riverside, 900 Big Springs Road, Surge 231, Riverside, California 92521-0135, USA)

  • Francesco Musolino

    (PISRS — Permanent International Session of Research Seminars, University of Messina, Messina, 98122, Italy)

Abstract

Horizontal supply chains is the term used when suppliers competing at a particular level of the chain form a coalition to benefit from their cooperation rather than the usual competitive strategies used by them to become part of the supply chain. Such horizontal cooperation among competitors is studied by Wood, using qualitative research methodology, based on case studies done in New Zealand. The term "coopetition" is used in the literature to describe such a cooperative behavior among competitors. In this paper we examine the coopetition phenomenon from a game theoretic perspective and give a model that brings out the equilibria that will lead to optimal participation among the coalition partners. The model considers a set of growers who can choose to form a coopetitive alliance to market their production in some external regions, while competing within the internal regions. By means of a general analytical framework of competition, we show the strategies that could provide solutions, in a coopetitive perspective, for the growers. These solutions offer a win–win outcome for the growers, letting them share the pie fairly within a growth path of games. We determine the proportion of resources they'll use and how the gain will be shared.

Suggested Citation

  • Tiru Arthanari & David Carfì & Francesco Musolino, 2015. "Game Theoretic Modeling of Horizontal Supply Chain Coopetition among Growers," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 17(02), pages 1-22.
    • Handle: RePEc:wsi:igtrxx:v:17:y:2015:i:02:n:s0219198915400137
    DOI: 10.1142/S0219198915400137
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    References listed on IDEAS

    as
    1. Carfì, David & Bagileri, Daniela & Dagnino, Gianbattista, 2012. "Asymmetric R&D alliances and coopetitive games," MPRA Paper 37095, University Library of Munich, Germany.
    2. David CARFÌ & Emanuele PERRONE, 2011. "Game Complete Analysis Of Bertrand Duopoly," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 2(1), pages 4-21.
    3. Carfì, David & Perrone, Emanuele, 2011. "Asymmetric Bertrand duopoly: game complete analysis by algebra system Maxima," MPRA Paper 35417, University Library of Munich, Germany.
    4. Carfì, David & Perrone, Emanuele, 2012. "Game complete analysis of symmetric Cournot duopoly," MPRA Paper 35930, University Library of Munich, Germany.
    5. Daniela Baglieri & David Carf`i & Giovanni Battista Dagnino, 2012. "Asymmetric R&D Alliances and Coopetitive Games," Papers 1205.2878, arXiv.org.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Carfì, David & Donato, Alessia & Schilirò, Daniele, 2018. "Sustainability of global feeding.Coopetitive interaction among vegan and non-vegan food firms," MPRA Paper 88400, University Library of Munich, Germany.
    2. Rategh, Yalda & Tamannaei, Mohammad & Zarei, Hamid, 2022. "A game-theoretic approach to an oligopolistic transportation market: Coopetition between incumbent systems subject to the entrance threat of an HSR service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 144-171.
    3. Alessia Donato & David Carfì & Beatrice Blandina, 2018. "Coopetitive Games for Management of Marine Transportation Activity: A Study Case," Mathematics, MDPI, vol. 6(12), pages 1-17, December.
    4. Patel, Pankaj C. & Tsionas, Mike G., 2022. "Cultural interconnectedness in supply chain networks and change in performance: An internal efficiency perspective," International Journal of Production Economics, Elsevier, vol. 243(C).
    5. Carfì, David & Donato, Alessia & Schilirò, Daniele, 2018. "An environmentally sustainable global economy. A coopetitive model," MPRA Paper 86718, University Library of Munich, Germany.
    6. Chunyang Han & Amjad Pervez & Jingqiong Wu & Xiaojing Shen & Dezhi Zhang, 2020. "Home-Delivery-Oriented Agri-Food Supply Chain Alliance: Framework, Management Strategies, and Cooperation Stability Control," Sustainability, MDPI, vol. 12(16), pages 1-34, August.

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    More about this item

    Keywords

    Horizontal supply chain; game theory; coopetition; 91A80; 91A35; 91B26; 90B50; C70; D53; F00; G01; G21; M20;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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