Game theory has become an essential tool in the analysis of supply
chains with multiple agents, often with conflicting objectives. This
chapter surveys the applications of game theory to supply chain analysis
and outlines game-theoretic concepts that have potential for future
application. We discuss both non-cooperative and cooperative game
theory in static and dynamic settings. Careful attention is given to techniques
for demonstrating the existence and uniqueness of equilibrium in
non-cooperative games. A newsvendor game is employed throughout to
demonstrate the application of various tools.