Collaboration agreements and Game theory in supply chain asymmetric relationships
Location
SU-215
Start Date
2-5-2025 11:20 AM
Department
Management and Marketing
Abstract
Organizations and managers must actively manage asymmetric relationships to prevent their disappearance. We propose that the best way to find solutions for problems related to managers and organizations operating under asymmetrical pressure is by using game theory concepts and tools. Game theory is concerned with the analysis of situations involving conflict, cooperation, and decision-maker (players) interactions (Rzeczycki, 2022). These relationships correspond to decentralized forms of supply chains that are frequent in today’s reality. This type of supply chain is characterized by the presence of multiple and independent decision-making processes, with different players and varying tactics, roles, and scenarios (Pérez-Mesa et al., 2021). Game theory applies cooperative and non-cooperative games to solve problems related to conflict, cooperation, and decision-making processes. Under asymmetries, it is more appropriate to apply non-cooperative games. The theory of non-cooperative games studies behaviors of participants who try to maximize individual goals in competitive situations characterized by a lack of communication or when one partner takes on a leadership position while other partners moderate decisions, seeking improvement in this new scenario (Wang et al., 2022). When considered through a game theory lens, firms will likely seek to solve conflicts and manage asymmetries through cooperation, though it obligates rules negotiation, forms, and methods of carrying out cooperative agreements. A partner’s cooperation could be appropriate in cases of conflict where managers do not control factors that influence performance, do not control conflicts of interest, and do not manage the relationships that are affected by asymmetries (Alsheyadi et al., 2024). Naturally, such solutions can only be achieved if managers in each stage of the SCM process agree to cooperate. Hence, we aim to address the research question: RQ1: What exactly is the impact of management games on SC performance under different levels of collaboration? RQ2: Which game model is most used by managers during relationships in emerging markets? To answer the RQs, we will apply the qualitative method by conducting interviews with the executives of Ecuadorian companies.
Faculty Sponsor
Marek Michalski
Collaboration agreements and Game theory in supply chain asymmetric relationships
SU-215
Organizations and managers must actively manage asymmetric relationships to prevent their disappearance. We propose that the best way to find solutions for problems related to managers and organizations operating under asymmetrical pressure is by using game theory concepts and tools. Game theory is concerned with the analysis of situations involving conflict, cooperation, and decision-maker (players) interactions (Rzeczycki, 2022). These relationships correspond to decentralized forms of supply chains that are frequent in today’s reality. This type of supply chain is characterized by the presence of multiple and independent decision-making processes, with different players and varying tactics, roles, and scenarios (Pérez-Mesa et al., 2021). Game theory applies cooperative and non-cooperative games to solve problems related to conflict, cooperation, and decision-making processes. Under asymmetries, it is more appropriate to apply non-cooperative games. The theory of non-cooperative games studies behaviors of participants who try to maximize individual goals in competitive situations characterized by a lack of communication or when one partner takes on a leadership position while other partners moderate decisions, seeking improvement in this new scenario (Wang et al., 2022). When considered through a game theory lens, firms will likely seek to solve conflicts and manage asymmetries through cooperation, though it obligates rules negotiation, forms, and methods of carrying out cooperative agreements. A partner’s cooperation could be appropriate in cases of conflict where managers do not control factors that influence performance, do not control conflicts of interest, and do not manage the relationships that are affected by asymmetries (Alsheyadi et al., 2024). Naturally, such solutions can only be achieved if managers in each stage of the SCM process agree to cooperate. Hence, we aim to address the research question: RQ1: What exactly is the impact of management games on SC performance under different levels of collaboration? RQ2: Which game model is most used by managers during relationships in emerging markets? To answer the RQs, we will apply the qualitative method by conducting interviews with the executives of Ecuadorian companies.