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Market Equilibrium in Multi-tier Supply Chain Networks
We consider a sequential decision model over multi-tier supply chain net...
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Flow Equilibria via Online Surge Pricing
We explore issues of dynamic supply and demand in ride sharing services ...
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Social Welfare and Price of Anarchy in Preemptive Priority Queues
Consider an unobservable M|G|1 queue with preemptive-resume scheduling a...
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Prophylaxis of Epidemic Spreading with Transient Dynamics
We investigate the containment of epidemic spreading in networks from a ...
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Profit and Strategic Analysis for MNO-MVNO Partnership
We consider a mobile market driven by two Mobile Network Operators (MNOs...
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Environmental Policy Regulation and Corporate Compliance in a Spatial Evolutionary Game Model
We use an evolutionary game model to study the interplay between corpora...
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Upstream Demand Uncertainty in a Two-Echelon Supply Chain: Comparative Statics via Stochastic Orderings
We revisit the classic Cournot model and extend it to a two-echelon supp...
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Price Setting on a Network
Most products are produced and sold by supply chain networks, where an interconnected network of producers and intermediaries set prices to maximize their profits. I show that there exists a unique equilibrium in a price-setting game on a network. The key distortion reducing both total profits and social welfare is multiple-marginalization, which is magnified by strategic interactions. Individual profits are proportional to influentiality, which is a new measure of network centrality defined by the equilibrium characterization. The results emphasize the importance of the network structure when considering policy questions such as mergers or trade tariffs.
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