Advertising Decisions In A Vertical Distribution Channel
AbstractA manufacturer and a retailer are the members of a simple distribution channel for a particular product in a segmented market. The advertising efforts of the two agents have a joint effect on the goodwill of the different market segments and then on the demand. The channel members aim at maximizing their profits, by choosing suitable advertising media and efforts. We focus mainly on competition between manufacturer and retailer, obtaining Nash equilibrium strategies, in the contexts of linear and concave demand. We consider also the possibility of cooperation, obtaining the coordinated channel optimal decisions.
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Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.
Volume (Year): 11 (2009)
Issue (Month): 03 ()
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Web page: http://www.worldscinet.com/igtr/igtr.shtml
Find related papers by JEL classification:
- B4 - Schools of Economic Thought and Methodology - - Economic Methodology
- C0 - Mathematical and Quantitative Methods - - General
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
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- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
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- Viscolani, Bruno, 2012. "Pure-strategy Nash equilibria in an advertising game with interference," European Journal of Operational Research, Elsevier, vol. 216(3), pages 605-612.
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