Dynamic Game Analysis on Cooperative Advertising Strategy in a Manufacturer-Led Supply Chain with Risk Aversion

This paper considers a dynamic Stackelberg game model for manufacturer-led supply chain with risk aversion. Cooperative advertising strategy is applied to the marketing decisions of participants. Based on and system theory, complex dynamical behaviors are studied through use several methods, such as stability region system, bifurcation diagram, attractor largest Lyapunov exponent diagram. The expected utilities participants given compared by numerical simulation. results illustrate that series variations in adjustment speed expenditure, participation rate local expenditure manufacturer, tolerance levels, effect coefficient may cause loss evolve into chaos. Meanwhile, Nash equilibrium point utility manufacturer retailer will change greatly. parameter control method further chaos phenomenon effectively. By means analyzing impact relevant factors model, can make optimal competition. findings this study mainly include following three aspects. Firstly, market maximizing revenue, adjusts appropriately, avoiding too high or low values. Secondly, try reduce their own level economic appropriately adjust adapt development according enterprise strategy. Finally, both coefficients expenditure. they attempt increase opponent’s gain most revenue. research provide important reference decision revenue maximization context