A Cooperative Game Theory Model of Quantity Discounts

Quantity discounts offered by a monopolist are considered in the context of a bargaining problem in which the buyer and the seller negotiate over the order quantity and the average unit price. All-units and incremental quantity discounts that permit transaction at a negotiated outcome are described. The effects of risk sensitivity and bargaining power on quantity discounts are discussed for alternative bargaining models.

• 저널Management Science · 35(6) · 693–707
• 토픽Supply Chain and Inventory Management · Management Information Systems
• DOI10.1287/mnsc.35.6.693
• 저자Rajeev Kohli, Heungsoo Park