Benefits of Collaboration on Capacity Investment and Allocation

• 成果类型: Article
• 署名作者: Ahn, Hyun Soo; Cetinkaya, Eren; Duenyas, Izak; Zhang, Mengzhenyu
• 署名单位: University of Michigan System; University of Michigan; University of London; University College London
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1177/10591478231224918
• 发表日期: 2024
• 页码: 128-145
• 关键词: competition; capacity management; collaboration; game theory; Nash bargaining solution

摘要

This paper studies how capacity collaboration can benefit two competing firms. We consider a two-stage model where capacity decisions are made in the first stage when there are significant uncertainties about market conditions, and then production decisions are made in the second stage after most of these uncertainties are resolved. We vary the degree of collaboration between the two firms in their capacity and production decisions, examining multiple models and comparing the outcomes. We find that a firm can benefit from collaboration even with its competitors. Interestingly, the firms do not have to make production decisions jointly to realize the benefits of collaboration. Additionally, while collaborative capacity investment proves beneficial, collaborating on production with existing capacity can often yield greater benefits. We find that the advantages of collaboration are most pronounced when competition intensifies, demand fluctuates significantly, and investment costs are high.