We study a two-period supply chain in which a manufacturer produces a product, learns to reduce cost, and sells it through a retailer with a price-dependent demand. The manufacturer's second-period production cost declines linearly in the first-period production with a random learning rate. The...

We obtain optimal emission levels and abatement expenditures in a finite-horizon transboundary pollution game with emission trading between two regions.We show that emission trading has significant impact on the optimal strategies and profits of the two regions. We find that cooperation between...

Supply chains today routinely use third parties for many strategic activities, such as manufacturing, R&D, or software development. These activities often include relationship-specific investment on the part of the vendor, while final outcomes can be uncertain. Therefore, writing complete...

This study investigates the strategic effect of return policies in a dual-channel supply chain, in which a manufacturer can sell products directly to end customers and indirectly via an independent retailer. The manufacturer decides whether to implement a return policy in either the direct or...

Channel sharing is an important marketing strategy for giant retailers who sell their own store brands and resell national brands for cooperative manufacturers simultaneously. To expand their market and increase profitability, national brand manufacturers may consider entering the online market...

A nearly explicit feedback Stackelberg-Nash equilibrium is obtained in a dynamic distribution channel consisting of a manufacturer and two competing asymmetric retailers engaged in promoting the manufacturer's product to be sold through the retailers. The manufacturer decides on its support for...

Given an arbitrary black-box strategy for the Iterated Prisoner's Dilemma game, it is often difficult to gauge to which extent it can be exploited by other strategies. In the presence of imperfect public monitoring and resulting observation errors, deriving a theoretical solution is even more...

In this work, we study an equilibrium-based continuous asset pricing problem which seeks to form a price process endogenously by requiring it to balance the flow of sales-and-purchase orders in the exchange market, where a large number of agents are interacting through the market price. Adopting...

Nonzero-sum stochastic differential games with impulse controls offer a realistic and far-reaching modelling framework for applications within finance, energy markets, and other areas, but the difficulty in solving such problems has hindered their proliferation. Semi-analytical approaches make...