Monotonicity in the stock competition game with consumer search

Anupindi and Bassok investigate the impact of centralizing the stocks in a one-manufacturer-two-retailer supply chain with consumer search. They observed through numerical studies that in the decentralized scenario, the retailers' order quantities are monotonic in the consumer search probability. This paper provides an analytical justification of this monotonicity. (C) 2009 Elsevier B.V. All rights reserved.