A Review of Stackelberg Game Theory Model on Trade Credit

Abstract

Over the years, game theory has been used extensively to study interactions between the supplier and the retailer in business environment. Recently, a number of researchers have applied Stackelberg game theory on trade credit in centralized and decentralized channels. In this work, we reviewed the assumptions of the Stackelberg game theory model, its solution, its limitations and further extensions were also considered. Furthermore, how the Stackelberg game model applies to trade credit has been analyzed.