Advanced search
Publication Cover
IIE Transactions Volume 31, 1999 - Issue 9
Submit an article Journal homepage
322
Views
92
CrossRef citations to date
0
Altmetric
ORIGINAL ARTICLES

An equilibrium analysis of linear, proportional and uniform allocation of scarce capacity

GÉRARD P. CACHON The Fuqua School of Business, Duke University, Box 90120, Durham, NC, 27708, USA E-mail: [email protected] or [email protected]
&
MARTIN A. LARIVIERE The Fuqua School of Business, Duke University, Box 90120, Durham, NC, 27708, USA E-mail: [email protected] or [email protected]
Pages 835-849 | Received 01 Feb 1998, Accepted 01 Nov 1998, Published online: 13 Jul 2010

Citations (92)

Keep up to date with the latest research on this topic with citation updates for this article.

Subscribe to citation updates

Read on this site (5)

Agustina Calatayud, Roberto Palacin, John Mangan, Elizabeth Jackson & Aurora Ruiz-Rua. (2016) Understanding connectivity to international markets: a systematic review. Transport Reviews 36:6, pages 713-736.
Read now
Michael Phelan & Seán McGarraghy. (2016) Grammatical evolution in developing optimal inventory policies for serial and distribution supply chains. International Journal of Production Research 54:1, pages 336-364.
Read now
Ismail Serdar Bakal & Joseph Geunes. (2010) Order timing strategies in a single-supplier, multi-retailer system. International Journal of Production Research 48:8, pages 2395-2412.
Read now
Ismail Serdar Bakal & Joseph Geunes. (2009) Analysis of order timing tradeoffs in multi-retailer supply systems. International Journal of Production Research 47:11, pages 2841-2863.
Read now
Yacine Rekik, Evren Sahin, Zied Jemai & Yves Dallery. (2008) Execution errors in retail supply chains: analysis of the case of misplaced products. International Journal of Systems Science 39:7, pages 727-740.
Read now

Articles from other publishers (87)

Victor Amelkin & Rakesh Vohra. (2023) Yield uncertainty and strategic formation of supply chain networks. Networks 83:1, pages 131-152.
Crossref
Yao Cui, Vishal Gaur & Jingchen Liu. (2023) Supply Chain Transparency and Blockchain Design. Management Science.
Crossref
Lixia Tan, Fuqiang Wang & Kui Li. (2023) Optimal multichannel distribution strategies with limited capacity and uncertain demand. Computers & Industrial Engineering 185, pages 109659.
Crossref
Yefen Chen, Feimin Zhong & Zhongbao Zhou. (2020) Supply commitment contract in capacity allocation games. Annals of Operations Research 329:1-2, pages 373-399.
Crossref
Xiaoshuai Fan, Ying‐Ju Chen & Christopher S. Tang. (2023) Allocating scarce resources in the presence of private information and heterogeneous favoritism. Production and Operations Management 32:7, pages 2068-2086.
Crossref
Eirini Spiliotopoulou & Anna Conte. (2021) Fairness ideals in inventory allocation. Decision Sciences 53:6, pages 985-1002.
Crossref
Baozhuang Niu, Yiyuan Ruan & Fanzhuo Zeng. (2022) Promoting remanufacturing through subsidy and environment tax: Channel co-opetition, incentive alignment and regulation optimization. Transportation Research Part E: Logistics and Transportation Review 166, pages 102880.
Crossref
Xueyuan Cai, Jianbin Li, Xiangrong Song, Fang Yuan & Xiaomeng Luo. (2022) Capacity allocation with minimum order quantity: Fixed allocation and turn-and-earn allocation. Computers & Industrial Engineering 172, pages 108507.
Crossref
Xueyuan Cai, Jianbin Li, Zhaotong Lian & Zhixin Liu. (2022) Fixed allocation of capacity for multiple retailers under demand competition. Omega 110, pages 102629.
Crossref
Masih Fadaki, Babak Abbasi & Prem Chhetri. (2022) Quantum game approach for capacity allocation decisions under strategic reasoning. Computational Management Science 19:3, pages 491-512.
Crossref
Nienke Hofstra & Eirini Spiliotopoulou. (2022) Behavior in rationing inventory across retail channels. European Journal of Operational Research 299:1, pages 208-222.
Crossref
Eirini Spiliotopoulou, Karen Donohue & Mustafa Çagri Gürbüz. (2021) Ordering Behavior and the Impact of Allocation Mechanisms in an Integrated Distribution System. Production and Operations Management 31:2, pages 422-441.
Crossref
Sebastián Villa. (2022) Competing for supply and demand: Understanding retailers' ordering decisions. International Journal of Production Economics 244, pages 108355.
Crossref
Jianbin Li, Xueyuan Cai & Binbin LiJianbin Li, Xueyuan Cai & Binbin Li. 2022. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition 133 168 .
Jianbin Li, Xueyuan Cai & Binbin LiJianbin Li, Xueyuan Cai & Binbin Li. 2022. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition 95 132 .
Jianbin Li, Xueyuan Cai & Binbin LiJianbin Li, Xueyuan Cai & Binbin Li. 2022. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition 51 93 .
Jianbin Li, Xueyuan Cai & Binbin LiJianbin Li, Xueyuan Cai & Binbin Li. 2022. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition 11 49 .
Jianbin Li, Xueyuan Cai & Binbin LiJianbin Li, Xueyuan Cai & Binbin Li. 2022. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition. Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition 1 9 .
Avi Herbon & Konstantin Kogan. (2021) Apportioning limited supplies to competing retailers under panic buying and associated consumer traveling costs. Computers & Industrial Engineering 162, pages 107775.
Crossref
Abhishek Chakraborty & Prasenjit Mandal. (2021) Channel efficiency and retailer tier dominance in a supply chain with a common manufacturer. European Journal of Operational Research 294:1, pages 100-121.
Crossref
Bosung Kim, Sang Won Kim, Seyed M. R. Iravani & Kun Soo Park. (2021) Simple Mechanisms for Sequential Capacity Allocations. Production and Operations Management 30:9, pages 2925-2943.
Crossref
Xia Xie, Peng Hu, Jing Yu & Bin Dai. (2021) Impact of capacity on the supplier's distribution channel selection in facing a retail platform. Naval Research Logistics (NRL) 68:6, pages 837-854.
Crossref
Ozgun Caliskan Demirag, Weili Xue & Jie Wang. (2021) Retailers’ Order Timing Strategies under Competition and Demand Uncertainty. Omega 101, pages 102256.
Crossref
Stefan Haeussler, Matthias Stefan, Manuel Schneckenreither & Anita Onay. (2021) The lead time updating trap: Analyzing human behavior in capacitated supply chains. International Journal of Production Economics 234, pages 108034.
Crossref
Ziteng Wang, Yue Dai, Shu‐Cherng Fang, Zhong‐Zhong Jiang & Yifan Xu. (2020) Inventory transshipment game with limited supply: Trap or treat. Naval Research Logistics (NRL) 67:6, pages 383-403.
Crossref
Mengping Zhu, Zhixue Liu, Jianbin Li & Stuart X. Zhu. (2020) Electric vehicle battery capacity allocation and recycling with downstream competition. European Journal of Operational Research 283:1, pages 365-379.
Crossref
Bin Dai & Yu Nu. (2020) Pricing and capacity allocation strategies: Implications for manufacturers with product sharing. Naval Research Logistics (NRL) 67:3, pages 201-222.
Crossref
Pelin Pekgün, Minseok Park, Pınar Keskinocak & Mani Janakiram. (2019) Does Forecast‐Accuracy‐Based Allocation Induce Customers to Share Truthful Order Forecasts?. Production and Operations Management 28:10, pages 2500-2513.
Crossref
Yefen Chen, Xiaobo Zhao, Wanshan Zhu & Jinxing Xie. (2019) How Precious Are Scarce Products? An Experimental Study on a Turn‐and‐Earn Allocation Mechanism. Decision Sciences 50:5, pages 1031-1059.
Crossref
Zhili Tian, Sammi Yu Tang & Panos (Panos) Kouvelis. (2018) Soft Order Commitment in Supply Chains: Role of Penalties and Rationing Rules. Decision Sciences 50:2, pages 340-373.
Crossref
Yunzhang Hou, Xiaoling Wang, Yenchun Jim Wu & Peixu He. (2018) How does the trust affect the topology of supply chain network and its resilience? An agent-based approach. Transportation Research Part E: Logistics and Transportation Review 116, pages 229-241.
Crossref
Zhibin (Ben) Yang, Xinxin Hu, Haresh Gurnani & Huiqi Guan. (2018) Multichannel Distribution Strategy: Selling to a Competing Buyer with Limited Supplier Capacity. Management Science 64:5, pages 2199-2218.
Crossref
Tony Haitao Cui & Yinghao Zhang. (2018) Cognitive Hierarchy in Capacity Allocation Games. Management Science 64:3, pages 1250-1270.
Crossref
Chun-Miin Jimmy Chen & Douglas J. Thomas. (2018) Inventory Allocation in the Presence of Service-Level Agreements. Production and Operations Management 27:3, pages 553-577.
Crossref
Javad Lessan & Selçuk Karabatı. (2018) A preference-based, multi-unit auction for pricing and capacity allocation. Computers & Operations Research 91, pages 237-246.
Crossref
Gad Allon, Achal Bassamboo & Eren B. Çil. (2017) Skill Management in Large-Scale Service Marketplaces. Production and Operations Management 26:11, pages 2050-2070.
Crossref
Erjie Ang, Dan A. Iancu & Robert Swinney. (2017) Disruption Risk and Optimal Sourcing in Multitier Supply Networks. Management Science 63:8, pages 2397-2419.
Crossref
Qiankai Qing, Tianhu Deng & Hongwei Wang. (2017) Capacity allocation under downstream competition and bargaining. European Journal of Operational Research 261:1, pages 97-107.
Crossref
Jianbin Li, Xueyuan Cai & Zhixin Liu. (2017) Allocating Capacity with Demand Competition: Fixed Factor Allocation*. Decision Sciences 48:3, pages 523-560.
Crossref
Ying Rong, Lawrence V. Snyder & Zuo‐Jun Max Shen. (2017) Bullwhip and reverse bullwhip effects under the rationing game. Naval Research Logistics (NRL) 64:3, pages 203-216.
Crossref
Jianbin Li, Niu Yu, Zhixin Liu & Xueyuan Cai. (2017) Allocation with demand competition: Uniform, proportional, and lexicographic mechanisms. Naval Research Logistics (NRL) 64:2, pages 85-107.
Crossref
Chungseung Lee & Kun Soo Park. (2016) Inventory and transshipment decisions in the rationing game under capacity uncertainty. Omega 65, pages 82-97.
Crossref
Yukun Zhao, Xiaobo Zhao, Lihong Wang, Yefen Chen & Xinmeng Zhang. (2016) Does Elicitation Method Matter? Behavioral and Neuroimaging Evidence from Capacity Allocation Game. Production and Operations Management 25:5, pages 919-934.
Crossref
Xun Wang & Stephen M. Disney. (2016) The bullwhip effect: Progress, trends and directions. European Journal of Operational Research 250:3, pages 691-701.
Crossref
Eirini Spiliotopoulou, Karen Donohue & Mustafa Çagri Gürbüz. (2015) Information Reliability in Supply Chains: The Case of Multiple Retailers. Production and Operations Management 25:3, pages 548-567.
Crossref
Mohammad Asim Nomani, Murshid Kamal, Irfan Ali & A. Ahmed. (2016) A Fuzzy Goal Programming Approach for Channel Allocation Problem Using Linear and Non-Linear Membership Functions. International Journal of Operations Research 13:1, pages 25-34.
Crossref
Baozhuang Niu, Yulan Wang & Pengfei Guo. (2015) Equilibrium pricing sequence in a co-opetitive supply chain with the ODM as a downstream rival of its OEM. Omega 57, pages 249-270.
Crossref
Chung-Yee Lee, Christopher S. Tang, Rui Yin & Jaehyung An. (2015) Fractional Price Matching Policies Arising from the Ocean Freight Service Industry. Production and Operations Management 24:7, pages 1118-1134.
Crossref
Bo Feng, Yanzhi Li & Huaxiao Shen. (2015) Tying mechanism for airlines’ air cargo capacity allocation. European Journal of Operational Research 244:1, pages 322-330.
Crossref
Reza Ahmadi, Foad Iravani & Hamed Mamani. (2015) Coping with Gray Markets: The Impact of Market Conditions and Product Characteristics. Production and Operations Management 24:5, pages 762-777.
Crossref
Yefen Chen & Xiaobo Zhao. (2015) Decision Bias in Capacity Allocation Games with Uncertain Demand. Production and Operations Management 24:4, pages 634-646.
Crossref
Arpita Ghosh & Patrick Hummel. (2014) A game-theoretic analysis of rank-order mechanisms for user-generated content. Journal of Economic Theory 154, pages 349-374.
Crossref
Yunzhang Hou, Yu Xiong, Xiaoling Wang & Xi Liang. (2014) The effects of a trust mechanism on a dynamic supply chain network. Expert Systems with Applications 41:6, pages 3060-3068.
Crossref
Soo-Haeng Cho & Christopher S. Tang. (2014) Technical Note—Capacity Allocation Under Retail Competition: Uniform and Competitive Allocations. Operations Research 62:1, pages 72-80.
Crossref
Wooseung Jang, Daeki Kim & Kwangtae Park. (2013) Inventory allocation and shipping when demand temporarily exceeds production capacity. European Journal of Operational Research 227:3, pages 464-470.
Crossref
Fangruo Chen, Jianbin Li & Hanqin Zhang. (2013) Managing Downstream Competition via Capacity Allocation. Production and Operations Management 22:2, pages 426-446.
Crossref
Yeu-Shiang Huang, Jun-Ming Chen & Zu-Liang Lin. (2013) A study on coordination of capacity allocation for different types of contractual retailers. Decision Support Systems 54:2, pages 919-928.
Crossref
Yefen Chen, Xuanming Su & Xiaobo Zhao. (2012) Modeling Bounded Rationality in Capacity Allocation Games with the Quantal Response Equilibrium. Management Science 58:10, pages 1952-1962.
Crossref
Zhixin Liu. (2012) Equilibrium analysis of capacity allocation with demand competition. Naval Research Logistics (NRL) 59:3-4, pages 254-265.
Crossref
Roberto Pinto. (2012) Stock rationing under service level constraints in a vertically integrated distribution system. International Journal of Production Economics 136:1, pages 231-240.
Crossref
Esmaeel Moradi, Mohammad Reza Ghezel Arsalan, Ali Naimi Sadigh & Hamed Fallah Roshan Ghalb. 2012. Supply Chain Sustainability and Raw Material Management. Supply Chain Sustainability and Raw Material Management 285 312 .
James J. Cochran, Louis A. CoxJr.Jr., Pinar Keskinocak, Jeffrey P. Kharoufeh & J. Cole SmithNicholas G. Hall. 2010. Wiley Encyclopedia of Operations Research and Management Science. Wiley Encyclopedia of Operations Research and Management Science.
James J. Cochran, Louis A. CoxJr.Jr., Pinar Keskinocak, Jeffrey P. Kharoufeh & J. Cole SmithNicholas Hall & Zhixin Liu. 2011. Wiley Encyclopedia of Operations Research and Management Science. Wiley Encyclopedia of Operations Research and Management Science.
James J. Cochran, Louis A. CoxJr.Jr., Pinar Keskinocak, Jeffrey P. Kharoufeh & J. Cole SmithMartin A. Lariviere. 2011. Wiley Encyclopedia of Operations Research and Management Science. Wiley Encyclopedia of Operations Research and Management Science.
Tsan Sheng Ng, Yang Sun & John Fowler. (2010) Semiconductor lot allocation using robust optimization. European Journal of Operational Research 205:3, pages 557-570.
Crossref
Minmin Qiu, Hongwei Ding, Jin Dong, Wei Wang & Changrui Ren. (2008) A myopic policy based simulation optimization framework in a general decentralized supply chain. A myopic policy based simulation optimization framework in a general decentralized supply chain.
Kune-Muh Tsai, Shiau-Yuan You, Yu-Hsin Lin & Chih-Hung Tsai. (2008) A fuzzy goal programming approach with priority for channel allocation problem in steel industry. Expert Systems with Applications 34:3, pages 1870-1876.
Crossref
Jian Yang & Shitao Yang. (2007) The use of a premium-payment scheme in a supply chain involving capacity acquisition. European Journal of Operational Research 181:1, pages 207-223.
Crossref
Minmin Qiu, Hongwei Ding, Jin Dong, Changrui Ren & Wei Wang. (2007) Impact of Business Service Modes on Distribution Systems: A Reinforcement Learning Approach. Impact of Business Service Modes on Distribution Systems: A Reinforcement Learning Approach.
Gérard P. Cachon & Fuqiang Zhang. (2007) Obtaining Fast Service in a Queueing System via Performance-Based Allocation of Demand. Management Science 53:3, pages 408-420.
Crossref
Luigi Montrucchio & Marco Scarsini. (2007) Large newsvendor games. Games and Economic Behavior 58:2, pages 316-337.
Crossref
Mingzhou Jin & S. David Wu. (2007) Capacity reservation contracts for high-tech industry. European Journal of Operational Research 176:3, pages 1659-1677.
Crossref
Fang Fang & Andrew Whinston. (2009) Option Contracts and Capacity Management—Enabling Price Discrimination under Demand Uncertainty. Production and Operations Management 16:1, pages 125-137.
Crossref
Boaz Golany & Uriel G. Rothblum. (2005) Inducing coordination in supply chains through linear reward schemes. Naval Research Logistics (NRL) 53:1, pages 1-15.
Crossref
Suleyman Karabuk & S. David Wu. (2009) Incentive Schemes for Semiconductor Capacity Allocation: A Game Theoretic Analysis. Production and Operations Management 14:2, pages 175-188.
Crossref
Hau L. Lee, V. Padmanabhan & Seungjin Whang. (2004) Comments on “Information Distortion in a Supply Chain: The Bullwhip Effect”. Management Science 50:12_supplement, pages 1887-1893.
Crossref
Funda Sahin & E. Powell Robinson. (2007) Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research. Decision Sciences 33:4, pages 505-536.
Crossref
Yao Cui, Vishal Gaur & Jingchen Liu. (2020) Blockchain Collaboration with Competing Firms in a Shared Supply Chain: Benefits and Challenges. SSRN Electronic Journal.
Crossref
Eirini Spiliotopoulou, Karen L Donohue & Mustafa Cagri Gurbuz. (2019) Do Allocation Mechanisms Drive Strategic Ordering? The Case of Integrated Distribution Systems. SSRN Electronic Journal.
Crossref
Chun-Miin (Jimmy) Chen. (2016) Inventory Allocation in the Presence of Service Level Agreements. SSRN Electronic Journal.
Crossref
Tony Haitao Cui & Yinghao Zhang. (2016) Cognitive Hierarchy in Capacity Allocation Games. SSRN Electronic Journal.
Crossref
Gad Allon, Achal Bassamboo & Eren Cil. (2015) Skill Management in Large-Scale Service Marketplaces. SSRN Electronic Journal.
Crossref
Yefen Chen, Xuanming Su & Xiaobo Zhao. (2011) Modeling Bounded Rationality in Capacity Allocation Games with the Quantal Response Equilibrium. SSRN Electronic Journal.
Crossref
Shrutivandana Sharma, Volodymyr Babich, Demosthenis Teneketzis & Mark P. van Oyen. (2010) A Decentralized Mechanism Implementing in Nash Equilibria the Optimal Centralized Solution of a Supply-Chain Problem. SSRN Electronic Journal.
Crossref
Christopher S. Tang. (2010) Advance Booking Programs for Managing Supply, Demand, and Price Risks. SSRN Electronic Journal.
Crossref
Ying Rong, Lawrence V. Snyder & Zuo-Jun Max Shen. (2008) Bullwhip and Reverse Bullwhip Effects under the Rationing Game. SSRN Electronic Journal.
Crossref
Jayanth Krishnan, Paul R. Kleindorfer & Aliza Heching. (2007) Demand Distortions and Capacity Allocation Policies. SSRN Electronic Journal.
Crossref

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Order Reprints Request Corporate Permissions

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

Request Academic Permissions

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.