Scandinavian Working Papers in Economics
Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science
No 2023/13: Multi-Periodic Distributional-Robust Stackelberg Game with Price-History-Dependent Demand and Environmental Corrective Actions
Mahnaz Fakhrabadi () and Leif K. Sandal ()
Additional contact information
Mahnaz Fakhrabadi: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Leif K. Sandal: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Abstract: The paper investigates a multi-period supply channel facing uncertain and price-history dependent demands and environmental regulations. The knowledge about the demands is limited to its mean and standard deviation in each period, .e., there is incomplete information on the actual distribution. A distributional robust approach is conducted to address incompleteness. The chain is incorporating environmental policies such as pollution constraints and (optimal) corrective taxes. A single contract covers all periods. Numerical examples highlight the benefits of a single contract.
Keywords: Dynamic Games; Single Contract; Distributional-Robust Demand; Price-History-Dependent Demand; Pollution Reduction; Sustainability
JEL-codes: C61; C62; C63; C72; C73; D81; Q52
Language: English
23 pages, September 22, 2023
Full text files
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