Abstract
Meca, et al. (2004) studied a class of inventory games which arise when a group of retailers who observe demand for a common good decide to cooperate and make joint orders. In this paper, the authors extend their model to the situation where the manufacturer provides the retailers with a price discount on purchases in excess of a certain order quantity. The authors define the corresponding inventory game with quantity discount, and show that the inventory game has a nonempty core. Then, the authors propose a core allocation rule, the demand-proportionality rule, and characterize it by introducing efficiency, the retailer splitting property and continuity.
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This research was supported by the National Natural Science Foundation of China under Grant Nos. 72071159, 71671140 and 71601156.
This paper was recommended for publication by Editor CAO Zhigang.
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Li, W., Xu, G. & Su, J. Inventory Games with Quantity Discount. J Syst Sci Complex 34, 1538–1554 (2021). https://doi.org/10.1007/s11424-021-9235-z
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DOI: https://doi.org/10.1007/s11424-021-9235-z