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A game theoretic approach to coordinate pricing and vertical co-op advertising i推荐
European Journal of Operational Research 211 (2011) 263–273
Contents lists available at ScienceDirect
European Journal of Operational Research
journal homepage: www.else /locate/ejor
Production, Manufacturing and Logistics
A game theoretic approach to coordinate pricing and vertical co-op advertising
in manufacturer–retailer supply chains
Mir Mehdi SeyedEsfahani a,⇑, Maryam Biazaran a, Mohsen Gharakhani b
a Department of Industrial Engineering, AmirKabir University of Technology, Tehran 15875-4413, Iran
b Department of Industrial Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran
a r t i c l e i n f o a b s t r a c t
Article history: Vertical cooperative (co-op) advertising is a marketing strategy in which the retailer runs local advertis-
Received 23 March 2010 ing and the manufacturer pays for a portion of its entire costs. This paper considers vertical co-op adver-
Accepted 15 November 2010 tising along with pricing decisions in a supply chain; this consists of one manufacturer and one retailer
Available online 23 November 2010
where demand is influenced by both price and advertisement. Four game-theoretic models are estab-
lished in order to study the effect of supply chain power balance on the optimal decisions of supply chain
Keywords: members. Comparisons and insights are developed. These embrace three non-cooperative games includ-
Marketing
ing Nash, Stackelbe
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