Premium
Capacity sharing with different oligopolistic competition and government regulation in a supply chain
Author(s) -
Chen Junlong,
Xie Xinran,
Liu Jiali
Publication year - 2020
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3094
Subject(s) - oligopoly , subsidy , economic surplus , competition (biology) , microeconomics , social welfare , economics , government (linguistics) , welfare , supply chain , industrial organization , business , cournot competition , market economy , marketing , political science , ecology , linguistics , philosophy , law , biology
This paper constructs a capacity sharing model in a supply chain to reveal the factors affecting equilibrium outcomes. The results show that improving the technical level lowers capacity charge and increases seller profits in any case. Product differentiation has uncertain impacts on equilibrium outcomes, which depend on government regulations and oligopolistic competition models. The improvement of supplier's fixed component of marginal costs improves capacity sharing charge and reduces profits and consumer surplus. The government regulations and oligopolistic competition model directly affect equilibrium outcomes and welfare distribution. Government capacity control helps improve social welfare, but the effect of government subsidies is uncertain.