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Joint decision on pricing and advertising for competing retailers under emergency purchasing

Author

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  • Liu, Bin
  • Ma, Xindi
  • Zhang, Rong

Abstract

This paper investigates an inventory decision problem under the pricing and advertising dependent stochastic demand, and considers a joint decision on pricing and advertising for competing retailers who operate short-life-cycle products under emergency purchasing. The results indicate that the retailer always prefers to advertise whether under a single or dual channel system. However, both the optimal prices and stocks increase, whereas customer welfare decreases.

Suggested Citation

  • Liu, Bin & Ma, Xindi & Zhang, Rong, 2014. "Joint decision on pricing and advertising for competing retailers under emergency purchasing," Economic Modelling, Elsevier, vol. 39(C), pages 257-264.
  • Handle: RePEc:eee:ecmode:v:39:y:2014:i:c:p:257-264
    DOI: 10.1016/j.econmod.2014.03.006
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    References listed on IDEAS

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