Keyword: Decision analysis; Game theory; Co-op advertising; Equilibrium; Coordination; Bargaining problems; Utilities.
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1.Introduction
Vertical co-op advertising is an interactive relationship between a manufacturer and a retailer in which the retailer initiates and implements a local advertising and the manufacturer pays part of the cost.
Expected sales response volume:
S (a ,q ) a q 9
2.Assumptions
The manufacturer’s,retailer’s,system’s expected profit functions are as follows:
Note: “cq” should be “q” 10
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3.Stackelberg equilibrium
We first solve for the reaction function in the
second stage of the game:
r is a concave function of a
Setting
to ato
the first be zero:
5
1.Introduction
Most studies to date on vertical co-op advertising have focused on a relationship where the manufacturer is a leader and the retailer is a follower.
3.Stackelberg equilibrium
We model the relationship between the manufacturer and the retailer as a sequential noncooperative game with the manufacturer as the leader and the retailer as the follower.
derivative
பைடு நூலகம்
of
r
with
respect
Then we have Eq(5):
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3.Stackelberg equilibrium
We can observe that:
So the manufacturer can use his co-op advertising policy and his national brand name investment to induce the retailer to increase or decrease local advertising expenditure at a level he expects.
The main reason for a manufacturer to use co-op advertising is to strengthen the image of the brand and to motivate immediate sales at retailer level.
game:manufacturer is a leader; 2.a noncooperative simultaneous move
game; 3.a cooperative game.
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2.Assumptions
S—retailer’s sales response volume function of product;
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3.Stackelberg equilibrium
Next the optimal value of q and t are
determined by maximizing the manufacturer’s profit subject to the constraint imposed by Eq(5).Hence,the manufacturer’s problem can be formulated as
a —retailer’s local advertising level; q—manufacturer’s national brand name
investment t —fraction of total local advertising
expenditures which manufacturer shares
文献综述博弈论在供应链管理中的应用
Huang,Z.M., S.X.Li. 2001. Co-op advertising models in manufacturerretailer supply chains:A game theory approach. European Journal of Operational Research 135,527-544.
This paper is intended to discuss the relationship between co-op advertising and efficiency of manufacturer- retailer transactions.
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1.Introduction
Three co-op advertising model: 1.a leader-follower noncooperative
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2.Assumptions
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One-period sales response volume function:
S(a,q) a q
~
~
0, ,, 0,E() 0