Stackelberg game

To find an equilibrium of a Stackelberg game which often called the Stackelberg equilibrium we need to solve a dynamic multi-period problem via backwards induction. We will focus on a two-period problem for analytical convenience. First, find the solution X2 x ) for the second player as a response to any decision made by the first player ... 

Stackelberg game) demand uncertainty random defaults. The paper analyzes the effect of correlation under deterministic and stochastic demand, determines optimal timing for supplier payments and optimal wholesale price under supply disruption risk... 

Yang et al. (2015) A S, T BOM CE, CO MIP, GA MN QN, A Coordination between product designers and supply chain managers following the Stackelberg game approach... 

Yadav SR, Muddada RRMR, Tiwari MK, Shankar R (2009) An algorithm portfolio based solution methodology to solve a supply chain optimization problem. Expert Syst Appl 36 8407-8420 Yang D, Jiao JR, Ji Y, Du G, Helo P, Valente A (2015) Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game. Eur J Oper Res 246 263-280... 

Bakir, N. (2011). A stackelberg game model for resource allocation in cargo container security. Annals of Operations Research 5-22. 

For given w, W2, and R, retailer determines her reaction function (Stackelberg game) by maximizing her profit in Q. Supplier 1 determines wj, and supplier 2 determines W2 and R by maximizing their respective profit functions, subject to the retailer s reaction function. 

Cachon and Zipkin (1990), we consider games where each player chooses a stationary policy the retailer s strategy is A and the wholesaler s strategy is order-up-to quantity Q, Three situations arise either the wholesaler or the retailer might have negotiation power in the supply chain and act as Stackelberg leaders, or it is possible that the players have equal power and therefore the solution is in the form of a Nash equilibrium. We will consider all three situations. 

Proposition 5. There is a unique Stackelberg equilibrium solution pair in the single-period game with a powerful retailer and without starting inventory that is characterized by the following system of equations ... 

Simaan, M. and J. B. Cruz, Jr. 1976. On the Stackelberg strategy in nonzero-sum games. In Multicriteria decision making and differential games , G. Leitmann, editor. Plenum Press, NY. 

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