Dynamic inventory and pricing models for competing retailers

We address infinite‐horizon models for oligopolies with competing retailers under demand uncertainty. We characterize the equilibrium behavior which arises under simple wholesale pricing schemes. More specifically, we consider a periodic review, infinite‐horizon model for a two‐echelon system with a single supplier servicing a network of competing retailers. In every period, each retailer faces a random demand volume, the distribution of which depends on his own retail price as well as those charged by possibly all competing retailers. We also derive various comparative statics results regarding the impact several exogenous system parameters (e.g., cost or distributional parameters) have on the equilibrium decisions of the retailers as well as their expected profits. We show that certain monotonicity properties, engrained in folklore as well as in known inventory models for centralized systems, may break down in decentralized chains under retailer competition. Our results can be used to optimize the aggregate profits in the supply chain (i.e., those of the supplier and all retailers) by implementing a specific wholesale pricing scheme. © 2003 Wiley Periodicals, Inc. Naval Research Logistics, 2004.     

Noncooperative cost spanning tree games with budget restrictions

We extend the noncooperative game associated with the cost spanning tree problem introduced by Bergantiños and Lorenzo (Math Method Oper Res 59(2004), 393–403) to situations where agents have budget restrictions. We study the Nash equilibria, subgame perfect Nash equilibria, and strong Nash equilibria of this game. © 2008 Wiley Periodicals, Inc. Naval Research Logistics 2008     

Inspection games with local and global allocation bounds

This article discusses a two‐player noncooperative nonzero‐sum inspection game. There are multiple sites that are subject to potential inspection by the first player (an inspector). The second player (potentially a violator) has to choose a vector of violation probabilities over the sites, so that the sum of these probabilities do not exceed one. An efficient method is introduced to compute all Nash equilibria parametrically in the amount of resource that is available to the inspector. Sensitivity analysis reveals nonmonotonicity of the equilibrium utility of the inspector, considered as a function of the amount of resource that is available to it; a phenomenon which is a variant of the well‐known Braess paradox. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013