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Downstream Entry in a Supply Chain

Yanwei Lu, He Liu, HongWei Song


Among manufacturing consumer goods industries, many fi rms compete in the upstream of the s upply chain, however, scant attention
has been paid to the eff ect of downstream entry in a two-ti er supply chain (manufacturers in the upstream and retailers in the downstream for
simplicity) with multiple manufacturers competing in the upstream. This paper extends Tyagi’s model and introduces m and n fi rms that
compete in quantity in the upstream and downstream market, respectively. In special cases, when m equals one or approaches infi nity, our
model will reduce to Tyagi’s or Frank’s model, respectively. Therefore, our model can be deemed as an integrated model of entry issues.


the supply chain ;two-tier supply chain;Downstream Entry

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DOI: http://dx.doi.org/10.18686/modern-management-forum.v6i10.5877