A Dual-Channel Sale System in Financially Constrained Supply Chain | Zendy

Xin Li | Zendy; Z. Tao | Zendy; Nana Feng | Zendy

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A Dual-Channel Sale System in Financially Constrained Supply Chain

Author(s) -

Xin Li,

Z. Tao,

Nana Feng

Publication year - 2021

Publication title -

scientific programming

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.269

H-Index - 36

eISSN - 1875-919X

pISSN - 1058-9244

DOI - 10.1155/2021/8872728

Subject(s) - subgame perfect equilibrium , subgame , interest rate , dual (grammatical number) , computer science , economics , microeconomics , game theory , finance , repeated game , art , literature , epsilon equilibrium

In order to realize the sustainable development of the communication industry, many banks have developed some new projects to provide loan to the mobile phone brand companies (MPBCs). +is paper studies a perfect information game among three parties: telecom operator (TO), MPBC, and bank. In the first stage, the bank decides an interest rate and shows it to the TO and the competitive MPBC. In the second stage, the TO and MPBC are engaged in Cournot games: a simultaneous subgame, a TO-asleader sequential subgame, and an MPBC-as-leader sequential subgame.+e TO’s and the MPBC’s decisions and the production/ sale quantities are investigated. +e impacts of the interest rate and the substitute factor on the TO’s and the MPBC’s optimal decisions are analyzed. When the substitute factor is high, at a low interest rate, the total sales in the simultaneous subgame is higher than those in the other two subgames; at a high interest rate, the total sales in the MPBC-as-leader subgame is higher than those in the other two subgames. However, when the substitute factor is low, at a low enough interest rate, the total sales in the simultaneous subgame is higher than those in the other two subgames; at a high enough interest rate, the total sales in the MPBCas-leader subgame is higher than those in the other two subgames; at a moderate interest rate, the total sales in the TO-as-leader subgame is higher than those in the other two subgames. Besides, the optimal interest rate of the bank is investigated and the impact of the substitute factor on the optimal interest rate is analyzed. +e bank sets a higher interest rate in the MPBC-as-leader subgame than those in the other two subgames. Besides, when the substitute factor is low, the bank sets a lower interest rate in the TO-as-leader subgame than that in the simultaneous subgame; however, when the substitute factor is high, the bank sets a higher interest rate in the TO-as-leader subgame than that in the simultaneous subgame.

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