This article is cited in 3 papers

Applied mathematics

Two firm competition at logistic market

V. M. Boure, A. A. Sergeeva

St. Petersburg State University, Faculty of Applied Mathematics and Control Processes

Abstract: The model of two firms competition at logistic market is suggested. Two firms transporting goods for the customers are considered. Each firm define their own pricing scheme. Customers choose firm trying to minimize net value of service casualties. The game-theoretic approach used to find optimal behavior of customers considered as players. The existence of equilibrium is proved. The point of Nash equilibrium is found.

Keywords: logistic market, Nash equilibrium, optimal strategies, cost of firm’s customer order fulfillment.

UDC: 519.2


Accepted: March 10, 2011