On a cooperative advertising model for a supply chain with one manufacturer and one retailer
Huang and Li (2001), Huang et al. (2002), Li et al. (2002), Xie and Ai (2006) and Yue et al. (2006) recently studied a game-theoretic model for cooperative advertising in a supply chain consisting of one manufacturer and one retailer. However, the sales-volume (demand) function considered in this model can become negative for some values of the decision variables, and in fact, this does happen for the proposed Stackelberg and Nash equilibrium solutions. Yue et al. (2006) acknowledge the negativity problem and suggest two constraints to fix it; however, they do not incorporate these constraints into their mathematical analysis. In this paper, we show that the results obtained by analyzing the advertising model under the constraints suggested by Yue et al. can differ significantly from those obtained in the previous papers.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 219 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/eor|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yue, Jinfeng & Austin, Jill & Wang, Min-Chiang & Huang, Zhimin, 2006. "Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount," European Journal of Operational Research, Elsevier, vol. 168(1), pages 65-85, January.
- Jorgensen, Steffen & Taboubi, Sihem & Zaccour, Georges, 2003. "Retail promotions with negative brand image effects: Is cooperation possible?," European Journal of Operational Research, Elsevier, vol. 150(2), pages 395-405, October.
- Salma Karray & Georges Zaccour, 2007. "Effectiveness Of Coop Advertising Programs In Competitive Distribution Channels," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 151-167.
- Jorgensen, Steffen & Zaccour, Georges, 2003. "Channel coordination over time: incentive equilibria and credibility," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 801-822, March.
- Xie, Jinxing & Wei, Jerry C., 2009. "Coordinating advertising and pricing in a manufacturer-retailer channel," European Journal of Operational Research, Elsevier, vol. 197(2), pages 785-791, September.
- Karray, Salma & Zaccour, Georges, 2006. "Could co-op advertising be a manufacturer's counterstrategy to store brands?," Journal of Business Research, Elsevier, vol. 59(9), pages 1008-1015, September.
- Xie, Jinxing & Ai, Song, 2006. "A note on "Cooperative advertising, game theory and manufacturer-retailer supply chains"," Omega, Elsevier, vol. 34(5), pages 501-504, October.
- Li, Susan X. & Huang, Zhimin & Zhu, Joe & Chau, Patrick Y. K., 2002. "Cooperative advertising, game theory and manufacturer-retailer supply chains," Omega, Elsevier, vol. 30(5), pages 347-357, October.
- Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
- Szmerekovsky, Joseph G. & Zhang, Jiang, 2009. "Pricing and two-tier advertising with one manufacturer and one retailer," European Journal of Operational Research, Elsevier, vol. 192(3), pages 904-917, February.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:219:y:2012:i:2:p:458-466. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If references are entirely missing, you can add them using this form.