Title: Equilibrium pricing and lead time decisions in a competitive industry
Authors: Hong, I-Hsuan
Hsu, Hsi-Mei
Wu, Yi-Mu
Yeh, Chun-Shao
Department of Industrial Engineering and Management
Keywords: Price competition;Lead time competition;Nash equilibrium
Issue Date: 1-Oct-2012
Abstract: Pricing and lead time are two crucial decisions to a success in today's competitive markets. This paper examines the equilibrium pricing and lead time decisions in a duopoly industry consisting of two large and several smaller firms with competition. We solve the sufficient Karush-Kuhn-Tucker (KKT) optimality conditions for the Nash equilibrium solution. We characterize the existence and uniqueness of the Nash equilibrium solution of pricing and lead time decisions for both homogenous and heterogeneous firms. Our case study provides important managerial insights about firms' behavior under price and lead time competition in a semiconductor manufacturing industry. (c) 2012 Elsevier B.V. All rights reserved.
URI: http://dx.doi.org/10.1016/j.ijpe.2012.05.033
ISSN: 0925-5273
DOI: 10.1016/j.ijpe.2012.05.033
Volume: 139
Issue: 2
Begin Page: 586
End Page: 595
Appears in Collections:Articles

Files in This Item:

  1. 000308449200021.pdf