@inproceedings{a48c040767ea4ec2acbcba3cfc9165af,
title = "Capacity allocation with competitive retailers",
abstract = "This paper addresses a problem in supply chain management that how scarce resources can be efficiently allocated among competing interests. We present a formal model of allocation mechanisms for such settings that a supplier with limited production capacity allocates its products to a set of competitive retailers. In contrary to the existing allocation mechanisms in which retailers are local monopolists, the new model exhibits much more complicated market behaviors. We show that the widely-used proportional allocation mechanism is no longer necessarily Pareto optimal, even if all retailers are in a symmetric situation. A necessary and sufficient condition for the proportional allocation to be Pareto optimal is given. We propose a truth-inducing allocation mechanism based on our capacity allocation model, which is more intuitive and applicable than the existing truth-inducing mechanisms.",
keywords = "Allocation mechanism design, Game theory, Oligopoly",
author = "Masabumi Furuhata and Dongmo Zhang",
year = "2006",
doi = "10.1145/1151454.1151474",
language = "English",
isbn = "1595933921",
series = "ACM International Conference Proceeding Series",
pages = "31--37",
booktitle = "Proc. 8th Int. Conf. Electronic Commerce 2006 - The New E-Commerce",
note = "8th International Conference on Electronic Commerce 2006 ; Conference date: 13-08-2006 Through 16-08-2006",
}