Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Table 1
Influence of New Competitor 
1
μ
=
0.75
μ
=
Profit 
(
A
TSC
) 
1
A
N
+
1
B
N
+
1
A
M
+
1
B
M
+
1
A
N
+
1
B
N
+
1
A
M
+
1
B
M
+
TO 
-15.68 -0.87 2.71 -1.32 -15.82 -0.61 2.48 -0.94 
TO 
sector -7.25 -0.87 2.71 -1.32 -7.40 -0.61 2.48 -0.94 
HA 
1.18 -0.87 -24.54 -1.32 1.01 -0.61 -24.71 -0.94 
HA 
sector 1.18 -0.87 -11.97 -1.32 1.01 -0.61 -12.16 -0.94 
TP 
1.18 -0.87 2.71 -1.32 1.01 -0.61 2.48 -0.94 
TSC 0.57 -0.87 0.76 -1.32 0.40 -0.61 0.54 -0.94 
0.5
μ
=
0.25
μ
=
Profit 
(
A
TSC
) 
1
A
N
+
1
B
N
+
1
A
M
+
1
B
M
+
1
A
N
+
1
B
N
+
1
A
M
+
1
B
M
+
TO 
-15.91 -0.40 2.34 -0.60 -15.96 -0.20 2.26 -0.30 
TO 
sector -7.50 -0.40 2.34 -0.60 -7.55 -0.20 2.26 -0.30 
HA 
0.91 -0.40 -24.81 -0.60 0.85 -0.20 -24.87 -0.30 
HA 
sector 0.91 -0.40 -12.28 -0.60 0.85 -0.20 -12.35 -0.30 
TP 
0.91 -0.40 2.34 -0.60 0.85 -0.20 2.26 -0.30 
TSC 0.30 -0.40 0.40 -0.60 0.24 -0.20 0.32 -0.30 

---

 
2007 Annual International CHRIE Conference & Exposition 
514
 
(Benchmark: 
10
A
N
=
,
6
A
M
=
,
1000
A
A
C
α
−
=
,
9
B
N
=
,
5
B
M
=
,
950
B
B
C
α
−
=
) 
The result numerical experiment in table 1 shows that the increment of direct competitors brings negative 
effort to the firms in the same sector, as well as total surplus of the sector. However, firms outside the sector in the 
same TSC are benefited from the change which also leads to profit increment when considering TSC as a whole. 
These are consistent with proposition 4 and proposition 5. Compared with direct competitors, indirect competitors 
cut down the profit for every entity in the same percentage. Along with the decrement of
μ
, the negative influence 
by direct competitors increment raises. This observation implies an important finding that the supply chain loyalty or 
quantity-sensitivity seems as a buffer to relax the competition. Meanwhile, the influence by increment of indirect 
competitors decreases with 
μ
increment. Consequently, we conclude by following observation: