A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain PartnersReport as inadecuate

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Mathematical Problems in Engineering - Volume 2014 2014, Article ID 754038, 10 pages -

Research ArticleDepartment of Industrial Engineering, Amirkabir University of Technology, Hafez Avenue No. 424, Tehran 15916-34311, Iran

Received 24 January 2014; Accepted 11 February 2014; Published 13 March 2014

Academic Editor: Matjaž Perc

Copyright © 2014 F. Kafi and S. M. T. Fatemi Ghomi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


There is a rising trend in supplying chain management to employ simultaneous cooperation and competition coopetition among supply chain partners as an efficient strategy to create value. There exist, however, few models which analyze coopetitive situations mathematically. Cooperative game theory is the common tool in analyzing cooperative situations. However, the term “cooperative” in “cooperative game theory” is absolutely misleading since it ultimately leads to competition analysis and ignores the internal structure of the cooperation. Coopetition, however, results in structural transformations in players. Therefore, we require a mathematical modeling approach which takes into account the internal structural changes due to cooperation among competitors. In so doing, in this paper we propose, we assume that those parameters of each firm’s profit function are subject to transformation by cooperation as a function of cooperation level so as to determine the right level of cooperation and production of firms while considering technical cooperation between them. Furthermore, we demonstrate the results of applying the idea to a supply chain situation where two similar suppliers participate. We conclude that under intuitive conditions coopetition strategy is superior to the pure competitive relationship between the suppliers in terms of profitability which validates the previous empirical results mathematically.

Author: F. Kafi and S. M. T. Fatemi Ghomi

Source: https://www.hindawi.com/


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