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Game-Theoretic Coordination Mechanisms in Distribution Channels: Integration and Extensions for Models Without Competition

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  • Ingene, Charles A.
  • Taboubi, Sihem
  • Zaccour, Georges

Abstract

A significant game-theoretic literature on the coordination of distribution channels has developed over the past three decades. We provide an extensive analysis of an important subset of this literature, channels without competition. We review four major models that build on the initial work of Jeuland and Shugan (1983) – who developed a quantity-discount schedule that induces channel members to set price and non-price, marketing-mix variables (MM-variables) at channel-coordinating levels. Moorthy (1987) criticized their schedule's complexity, arguing for a simpler wholesale contract that induces coordination by avoiding double marginalization.

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  • Ingene, Charles A. & Taboubi, Sihem & Zaccour, Georges, 2012. "Game-Theoretic Coordination Mechanisms in Distribution Channels: Integration and Extensions for Models Without Competition," Journal of Retailing, Elsevier, vol. 88(4), pages 476-496.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:4:p:476-496
    DOI: 10.1016/j.jretai.2012.04.002
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    Cited by:

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    3. Watson, George F. & Worm, Stefan & Palmatier, Robert W. & Ganesan, Shankar, 2015. "The Evolution of Marketing Channels: Trends and Research Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 546-568.
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    5. Karray, Salma & Martín-Herrán, Guiomar & Zaccour, Georges, 2017. "Assessing the profitability of cooperative advertising programs in competing channels," International Journal of Production Economics, Elsevier, vol. 187(C), pages 142-158.
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    8. Karray, Salma & Martín-Herrán, Guiomar, 2022. "The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing," International Journal of Production Economics, Elsevier, vol. 244(C).
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    15. Pietro De Giovanni, 2016. "State- and Control-Dependent Incentives in a Closed-Loop Supply Chain with Dynamic Returns," Dynamic Games and Applications, Springer, vol. 6(1), pages 20-54, March.
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    19. Pietro De Giovanni, 2016. "Coordination in a distribution channel with decisions on the nature of incentives and share-dependency on pricing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(8), pages 1034-1049, August.
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    22. Xiaodong Yang & Gangshu (George) Cai & Charles A. Ingene & Jihong Zhang, 2020. "Manufacturer Strategy on Service Provision in Competitive Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 72-89, January.

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