A Game-Theoretic Model to Analyze Value Creation with Simultaneous Cooperation and Competition of Supply Chain Partners

Figure 2

In the scenario where the cooperation level is set competitively, for different values of 𝛿, the total market demand is sufficiently large but not unlimited (see Figure 3) and the coopetition index is significant (see Figure 4) where 𝑎=1000, 𝛼=100, 𝑏=0.01, and 𝛽=0.001. Therefore, according to Property 1, at each 𝛿 there exists a unique feasible Nash equilibrium in which coopetitive Cournot duopoly is preferred over the classic Cournot duopoly unless the cooperation cost is considerably unaffordable (𝛿→2).