Pricing decisions for complementary products with firm's different market powers in fuzzy environments

Article type: Research Article

Authors: Khamseh, Alireza Arshadi | Soleimani, Fariba | Naderi, Bahman

Affiliations: Industrial Engineering Department, Kharazmi University, Tehran, Iran

Note: [] Corresponding author. Alireza Arshadi Khamseh, Assistant Professor Industrial Engineering Department, Kharazmi University, Tehran, Iran. Tel.: +98 912 31 888 15; Fax: +98 21 888 30 891; E-mail: [email protected]

Abstract: This paper analyzes the pricing decisions of complementary products in a fuzzy supply chain with two manufacturers and one common retailer. Four pricing models, including centralized decision model, MS-Bertrand, RS-Bertrand and NG models, with consideration of different market power structures are adopted. Both the manufacturing cost and the customer demand for products are considered as fuzzy variables. Optimal decisions on prices are determined by using game theoretical approach for each model. Finally, a numerical example is solved to illustrate the effectiveness of each model.

Keywords: Pricing decisions, complementary products, game theory, fuzzy environment

DOI: 10.3233/IFS-141202

Journal: Journal of Intelligent & Fuzzy Systems, vol. 27, no. 5, pp. 2327-2340, 2014