Competition, collaboration, and control of decision rights in supply chains

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The management, coordination, and design of multi-firm supply chains are topics of interest to industrial engineers, operations and supply chain managers, and economists. Traditionally, research in this area has focused on the optimal control of operational decisions such as the management of inventories in a supply chain. The methodology used has relied heavily on optimization theory. In the last decade new research has augmented this literature by incorporating the issue of incentives. This additional focus is supported by game theory, and recognizes the fact that all supply chains consist of multiple independent decision makers and individual decision makers maximize their self-interest.