a game theoretic approach to coordinate pricing and vertical co-op advertising i

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1、EuropeanJournalofOperationalResearch211(2011)263–273ContentslistsavailableatScienceDirectEuropeanJournalofOperationalResearchjournalhomepage:www.elsevier.com/locate/ejorProduction,ManufacturingandLogisticsAgametheoreticapproachtocoordinatepricingandverticalco-opadvertisinginman

2、ufacturer–retailersupplychainsa,⇑abMirMehdiSeyedEsfahani,MaryamBiazaran,MohsenGharakhaniaDepartmentofIndustrialEngineering,AmirKabirUniversityofTechnology,Tehran15875-4413,IranbDepartmentofIndustrialEngineering,IranUniversityofScienceandTechnology,Tehran16846-13114,Iranarticlei

3、nfoabstractArticlehistory:Verticalcooperative(co-op)advertisingisamarketingstrategyinwhichtheretailerrunslocaladvertis-Received23March2010ingandthemanufacturerpaysforaportionofitsentirecosts.Thispaperconsidersverticalco-opadver-Accepted15November2010tisingalongwithpricingdecisi

4、onsinasupplychain;thisconsistsofonemanufacturerandoneretailerAvailableonline23November2010wheredemandisinfluencedbybothpriceandadvertisement.Fourgame-theoreticmodelsareestab-lishedinordertostudytheeffectofsupplychainpowerbalanceontheoptimaldecisionsofsupplychainKeywords:members.

5、Comparisonsandinsightsaredeveloped.Theseembracethreenon-cooperativegamesinclud-MarketingingNash,Stackelberg-manufacturerandStackelberg-retailer,andonecooperativegame.InthelatterSupplychaincoordinationcase,boththemanufacturerandtheretailerreachthehighestprofitlevel;subsequently,t

6、hefeasibilityPricingVerticalcooperativeadvertisingofbargaininggameisdiscussedinabidtodetermineaschemetosharetheextrajointprofit.GametheoryÓ2010ElsevierB.V.Allrightsreserved.1.Introductionconsumerdemandisinfluencedbybothpriceandadvertisingefforts.Supplychaincoordinationhasbeenthef

7、ocusofmanyresearchManufacturersandretailersuseadvertisingprogramstocon-studieswithoutwhichchannelmemberstendtomaximizetheirvincecustomerstopurchasetheirproducts.Theireffortsarediffer-ownprofit.Aprimeexampleassociatedwithsuchanuncoordi-entinthesensethat,theaimofmanufacturer’snati

8、onalnatedsystemis‘‘doublemarginalization’’,inwhichther