Research Article

Sourcing for Quality: Cooperating with a Single Supplier or Developing Two Competing Suppliers?

Table 6

Effect of key parameters on the equilibrium outcomes of the dual-sourcing case.

Strategy

DC-strategyCase  1
≥0≥0≥0≥0≥0 for ≥0 for
≤0 for ≤0 for
≤0≤0≤0≤0≥0 for ≥0 for
≤0 for ≤0 for
Case  2
≤0≤0≤0≤0≥0 for ≥0 for
≤0 for ≤0 for
≥0≥0≥0≥0≥0 for ≥0 for
≤0 for ≤0 for

DD-strategyCase  1
≥0≥0≥0≥0≥0 for ≥0 for
≤0 for ≤0 for
≤0≤0≤0≤0≥0 for ≥0 for
≤0 for ≤0 for
Case  2
≤0≤0≤0≤0≥0 for ≥0 for
≤0 for ≤0 for
≥0≥0≥0≥0≥0 for ≥0
≤0 for

Note: definitions of notations , , , , , and are presented in online supplements.