Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)
- Volume 19 Issue 2
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- Pages.45-56
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- 1994
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- 1225-1119(pISSN)
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- 2733-4759(eISSN)
Competitive Nonlinear Quantity Discount and Inventory Policies
경쟁환경에서의 비선형 가격정책 및 재고정책
Abstract
This paper the profit maximizing order quantity model to the symmetric oligopoly consisting of sellers of a homogeneous product who compete with each other for the same potential buyers. Buyers are classified by type, each selecting an optimal purchase quantity in response to the nonlinear quantity discount pricing schedule given by the sellers. Symmetric equilibrium and the economic quantities that sellers must determine are analysed in a Cournot framework, which explicitly depend on the number of sellers. Economic implications are obtianed from the optimality conditions based on themarket share paraments which are used to characterize the competitior's marketing strategy.
Keywords