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

Figure 5

In the scenario where the cooperation level is set cooperatively, for different values of 𝛿, the total market demand is sufficiently large but not unlimited (see Figure 6) and the coopetition index is significant (see Figure 7) where 𝑎=1000, 𝛼=100, 𝑏=0.1, and 𝛽=0.01. Therefore, according to Property 3, at each 𝛿 there exists a unique feasible Pareto equilibrium in which coopetitive Cournot duopoly is always preferred over the classic Cournot duopoly.