An approach based on dynamic conjectural variations is advanced for developing dynamic advertising strategies in a Lanchester oligopoly differential game. The approach allows competitors to anticipate rival reactions to market-share state variables, and maintains the computational advantage of...

Performance-based contracting is reshaping service support supply chains in capital-intensive industries such as aerospace and defense. Known as "power by the hour" in the private sector and as "performance-based logistics" (PBL) in defense contracting, it aims to replace traditionally used...

This paper presents a consumer-based methodology for new product pricing and positioning in the face of price competition. The price competition is modelled as a Nash equilibrium for which two complementary approaches are employed: an analytical approach of duopoly provides qualitative insights...

Final-offer arbitration is a procedure for settling disputes between two parties in which an arbitrator chooses the final offer of the party closest to what he considers a fair settlement. This procedure is modeled as a two-person, zero-sum game of imperfect information, in which the parties are...

Closed-loop (perfect) equilibria in a Lanchester duopoly differential game of advertising competition are used as the basis for empirical investigation. Two systems of simultaneous nonlinear equations are formed, one from a general Lanchester model and one from a constrained model. Two empirical...

There has been a call to investigate the negotiation process (Gale [Gale, D. 1986. Bargaining and competition part I: Characterization. Econometrica 54(4) 785--806.], Shubik [Shubik, M. 1982. Game Theory in the Social Sciences: Concepts and Solutions. M. I. T. Press, Boston, MA.]), as it is felt...

The paper operationalizes the notion of shortage cost by considering the behavior of customers and competing firms and examines the role of inventory in response time competition. We start with a single-firm production control model in which customers are characterized by their preferences of...

In this paper we present a Nash dynamic game model of interactions among oil inventory and tariff policies for oil importing countries. The inventory policies consist of the rates for building up and drawing down strategic oil reserves, while the tariff policies consist of setting tariffs as a...