Abstract
In this chapter, we develop a dynamic model of collaboration between a manufacturer and its supplier, where the fundamental issue is, for each player, how to allocate own resources between improving an existing product and developing a new one. We study the optimal time path of effort allocation for each player in a noncooperative setting, and then look into the cooperative setting. We finally conduct a numerical analysis and observe how the optimal dynamics of key variables change as parameters of the game vary.
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© 2007 Birkhäuser Boston
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Kim, B.w., Ouardigh, F.E. (2007). Supplier-Manufacturer Collaboration onNew Product Development. In: Jørgensen, S., Quincampoix, M., Vincent, T.L. (eds) Advances in Dynamic Game Theory. Annals of the International Society of Dynamic Games, vol 9. Birkhäuser Boston. https://doi.org/10.1007/978-0-8176-4553-3_26
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DOI: https://doi.org/10.1007/978-0-8176-4553-3_26
Publisher Name: Birkhäuser Boston
Print ISBN: 978-0-8176-4399-7
Online ISBN: 978-0-8176-4553-3
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