Special Issue on Applied Optimization and Game-Theoretic Models (Part II); Guest Editors: S. K. Neogy, T. Parthasarathy and A. K. DasNo Access

Game Theoretic Modeling of Horizontal Supply Chain Coopetition among Growers

Tiru Arthanari

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

Corresponding author.

Search for more papers by this author

David Carfì

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

Search for more papers by this author

, and

Francesco Musolino

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

Search for more papers by this author

https://doi.org/10.1142/S0219198915400137Cited by:20 (Source: Crossref)

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.

Keywords:

AMSC: 91A80, 91A35, 91B26, 90B50

JEL: C70, D53, F00, G01, G21, M20

References

T. S. Arthanari, Quality Eng. 17(2), 291 (2005). Crossref, Google Scholar
Baglieri, D., Carfì, D. and Dagnino, G. B. [2012] Asymmetric R&D alliances and coopetitive games, Advances in Computational Intelligence, Part IV, 14th Int. Conf. on Information Processing and Management of Uncertainty Knowledge Based systems, IPMU 2012, Catania, Italy, 9–13 July 2012, Proceedings, Part IV, eds. S. Greco, B. Bouchon-Meunier, G. Coletti, M. Fedrizzi, B. Matarazzo and R. Yager, Vol. 300, Communications in Computer and Information Science (Springer, Berlin), pp. 607–621 . Google Scholar
A. M. Brandenburger and B. J. Nalebuff , Co-opetition ( Doubleday , New York , 1996 ) . Google Scholar
D. Carfì , Applied Sciences 11 , 35 ( 2009 ) . Google Scholar
D. Carfì and F. Musolino, Game complete analysis for financial markets stabilization, Proc. of the 1st Int. on-line Conf. on Global Trends in Finance, Association for Sustainable Education, Research and Science (2011) pp. 14–42. Google Scholar
D. Carfì and F. Musolino , J. Adv. Studies Fin. (JASF) 2 , 74 ( 2011 ) . Google Scholar
D. Carfì and F. Musolino, Economic Modell. 29(6), 2417 (2012). Crossref, Web of Science, Google Scholar
D. Carfì and F. Musolino, A coopetitive approach to financial markets stabilization and risk management, Advances in Computational Intelligence300, Communications in Computer and Information Science (Springer, 2012) pp. 578–592. Google Scholar
D. Carfì and F. Musolino, AAPP/Physical, Mathematical and Natural Sciences 91(1), 1 (2013). Google Scholar
Carfì, D. and Musolino, F. [2013b] Credit crunch in the Euro area: A coopetitive multi-agent solution, in Multicriteria and Multiagent Decision Making with Applications to Economics and Social Sciences, Studies in Fuzziness and Soft Computing, Vol. 305 (Springer, Berlin Heidelberg), pp. 27–48, doi:10.1007/978-3-642-35635-3-3 . Google Scholar
D. Carfì and F. Musolino , APPS — Appl. Sci. 15 , 43 ( 2013 ) . Google Scholar
D. Carfì and F. Musolino , Economic Model. 37 , 306 ( 2014 ) . Crossref, Web of Science, Google Scholar
Carfì, D. and Musolino, F. [2014b] Dynamical stabilization of currency market with fractal-like trajectories, Scientific Bullettin of the Politechnica University of Bucharest, Series A, Applied Mathematics and Physics, 76 (4) . Google Scholar
D. Carfì and E. Perrone, Theoretical and Practical Research in Economic Fields 2(3), 5 (2011). Google Scholar
Carfì, D. and Perrone, E. [2011b] Game complete analysis of Bertrand Duopoly, mathematical models in economics (Chapter 2), ASERS, pp. 22–43, ISBN 9786069238660 . Google Scholar
Carfì, D. and Perrone, E. [2011c] Asymmetric Bertrand Duopoly: Complete analysis by algebra system maxima. Mathematical models in economics (Chapter 3), ASERS, pp. 44–66, ISBN 9786069238660 . Google Scholar
Carfì, D. and Perrone, E. [2012] Game complete analysis of classic economic Duopolies, Series of Economics, Lambert Academic Publishing, ISBN 978-3-848420995 . Google Scholar
D. Carfì and E. Perrone , J. Rev. Global Econom. 2 , 194 ( 2013 ) . Google Scholar
D. Carfì and D. Schilirò, Econom. Model. 29(4), 1215 (2012). Crossref, Web of Science, Google Scholar
Dagnino, G. B. and Rocco, E. [2009] Coopetition Strategy — Theory, Experiments and Cases (Routledge) . Google Scholar
G. B. Dagnino and G. Padula, Coopetition strategy: Towards a new kind of interfirm dynamics for value creation, EURAM — The European Academy of Management Second Annual Conference, Innovative Research in Management (Stockholm School of Entrepreneurship, Sweden, 2002) pp. 8–10. Google Scholar
F. Musolino, AAPP|Atti Acc. Peloritana Pericolanti Cl. Sci. Fis. Mat. Nat. 90(1), (2012). Google Scholar
Musolino, F. [2012b] Modeling and integration of Italian proposal for spread moderation in the Euro-Area, submitted . Google Scholar
Wood, L. C. [2010] Effective horizontal coordination in clusters: Bridging the barriers to effective supply chain management, Ph.D. thesis, Department of Information Systems and Operations Management, The University of Auckland, Auckland, New Zealand . Google Scholar
L. C. Wood, Customer-Oriented Global Supply Chains: Concepts for Effective Management, eds. E. Eyob and E. Tetteh (Hershey, PA, 2012) pp. 76–93. Crossref, Google Scholar
KPMG [2010] Field Notes, Issue 39, August 2010, Agribusiness Field Notes . Google Scholar