2020ComplexityOpen access

Analysis of Complex Dynamics in Different Bargaining Systems

Xiaogang Ma, Chunyu Bao, Lin Su

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Abstract

This paper focuses on the bargaining behavior of supply chain members and studies the stability of the bargaining system. There are two forms of bargaining in the process of negotiation. One is separate bargaining, and the other is that the automobile manufacturers form an alliance and bargain with the supplier collectively. We explore the influence of bargaining power and adjustment speed on the stability of the dynamic system and find that both of the factors need to be small to maintain the stability of the supply chain. After comparing the two forms of bargaining in terms of profits and stable regions, we find that the collective bargaining is a pattern with the existence of risk and benefit simultaneously. In order to control chaos in collective bargaining to lower the risk, we adopt the delay feedback control method. With the introduction of the control factor, the system tends to be stable finally.

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What this paper is about

This paper focuses on the bargaining behavior of supply chain members and studies the stability of the bargaining system. There are two forms of bargaining in the process of negotiation. One is separate bargaining, and the other is that the automobile manufacturers form an alliance and bargain with the supplier collectively. We explore the influence of bargaining power and adjustment speed on the stability of the dynamic system and find that both of the factors need to be small to maintain the stability of the supply chain. After comparing the two forms of bargaining in terms of profits and stable regions, we find that the collective bargaining is a pattern with the existence of risk and benefit simultaneously. In order to control chaos in collective bargaining to lower the risk, we adopt the delay feedback control method. With the introduction of the control factor, the system tends to be stable finally.

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Available abstract

This paper focuses on the bargaining behavior of supply chain members and studies the stability of the bargaining system. There are two forms of bargaining in the process of negotiation. One is separate bargaining, and the other is that the automobile manufacturers form an alliance and bargain with the supplier collectively. We explore the influence of bargaining power and adjustment speed on the stability of the dynamic system and find that both of the factors need to be small to maintain the stability of the supply chain. After comparing the two forms of bargaining in terms of profits and stable regions, we find that the collective bargaining is a pattern with the existence of risk and benefit simultaneously. In order to control chaos in collective bargaining to lower the risk, we adopt the delay feedback control method. With the introduction of the control factor, the system tends to be stable finally.

Key concepts: Bargaining power, Negotiation, Microeconomics, Stability (learning theory), Economics, Order (exchange), Bargaining problem, Control (management)

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