The Game Theoretic Analysis Of Tourism Supply Chain Considering Negative Externality

With the laudatory reputation of eternal sunrise industry and as a considerable part of the tertiary industry,tourism industry has shown its economic prosperity and experienced continued expansion to become one of the largest and fastest-growing economic sectors in the world.In pace with the dramatic development of the tourism,there is a vigorous growth in Chinese domestic tourists,leading to almost all scenic spots to be nearly full or overflowing(especially for some renowned attractions,theme parks and so on).A variety of the negative effects deriving from the excessive tourists,in essence,is a negative externality.To better understand the influence of the increasing tourists,we introduce the negative externality in the model.In this paper we assume a tourism supply chain including an attraction developer and two competitive travel agencies.First the travel agencies simultaneously determine the service level.Then,based on these two service quality,the attraction developer determines the optimal wholesale price of the tickets.Finally the travel agencies determine the order quantity of tickets.Through the backward induction,we derive the equilibrium solutions.Then we study the impacts of the cost coefficient,substitution rates,unit additional earning and negative externality factor on decision and the profitability of the supply chain members and obtain some propositions.In addition,different travel agencies will often cooperate with various supply companies,hotels,restaurants,etc.,and they get different discounts offered by these partners.So we consider the case of the asymmetric positive externality(where two agencies have differentiated additional earnings)and cost coefficients.