Game analysis on purchasing for suppliers and purchasers under supply chain environment

Adopting game theories, this paper has analyzed on the judgments and strategies between enterprises' purchasers and suppliers under static and dynamic environment, when they have perfect information and imperfect information. Through the establishment of a principal-agent game model, the results show that the positive supply attitude of suppliers and incentive mechanism of purchasing enterprises are the influencing factors to the revenues of both suppliers and purchasers during purchasing process. © 2009 IEEE.