Charitopoulos, VM;
Dua, V;
Pinto, JM;
Papageorgiou, LG;
(2020)
A game-theoretic optimisation approach to fair customer allocation in oligopolies.
Optimization and Engineering
10.1007/s11081-019-09482-x.
(In press).
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Abstract
Under the ever-increasing capital intensive environment that contemporary process industries face, oligopolies begin to form in mature markets where a small number of companies regulate and serve the customer base. Strategic and operational decisions are highly dependent on the firms’ customer portfolio and conventional modelling approaches neglect the rational behaviour of the decision makers, with regards to the problem of customer allocation, by assuming either static competition or a leader-follower structure. In this article, we address the fair customer allocation within oligopolies by employing the Nash bargaining approach. The overall problem is formulated as mixed integer program with linear constraints and a nonlinear objective function which is further linearised following a separable programming approach. Case studies from the industrial liquid market highlight the importance and benefits of the proposed game theoretic approach.
| Type: | Article |
|---|---|
| Title: | A game-theoretic optimisation approach to fair customer allocation in oligopolies |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s11081-019-09482-x |
| Publisher version: | https://doi.org/10.1007/s11081-019-09482-x |
| Language: | English |
| Additional information: | This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
| Keywords: | Game theory · Supply chain optimisation · Oligopoly · Nash equilibrium · Customer allocation |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Chemical Engineering |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10090645 |
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