This work considers cooperative advertising in a manufacturer–retailer supply chain. While the manufacturer is the Stackelberg leader, the retailer is the follower. Using Sethi model it models the dynamic effect of the manufacturer and retailer’s advertising efforts on sale. It uses optimal control technique and stochastic differential game theory to obtain the players’ advertising strategies a...

This work deals with subsidy transfer from a manufacturer to a retailer through the distributor in cooperative advertising. While the retailer engages in local advertising, the manufacturer indirectly participates in retail advertising using advertising subsidy which is given to the distributor, who in turn transfers it to the retailer. The manufacturer is the Stackelberg game leader; the distr...

Can subsidies promote Pareto-optimum coordination? We found that partially subsidizing 2 out of 6 players in a laboratory coordination game usually produced better coordination and higher total payoffs both with deterministic and stochastic payoffs. After removing the subsidy, high coordination continued in most groups with stochastic payoffs, but declined for groups with deterministic ones. A ...

Can subsidies promote Pareto-optimum coordination? We found that partially subsidizing the cooperative actions for two out of six players in a laboratory coordination game usually produced better coordination and higher total social welfare with both deterministic and stochastic payoffs. Not only were the subsidized players more likely to cooperate (choose the Pareto-optimum action), but the un...

dependent on initial conditions, stochastic elements are also incorporated into the analysis. In this study, the effects of an export subsidy for cotton are analyzed using a linear elasticity model. COMPARATIVE STATICS OF AN The study explicitly addresses the interaction of EXPORT SUBSIDY current domestic policies with the proposed export subsidy. An export subsidy may be a successful The expec...

Can subsidies promote Pareto-optimum coordination? We found that partially subsidizing the cooperative actions for 2 out of 6 players in a laboratory coordination game usually produced better coordination and higher total payoffs both with deterministic and stochastic payoffs. Not only were the subsidized players more likely to cooperate (choose the Pareto-optimum action), but the unsubsidized ...

the hub location decision is a long term investment and any changes in it take considerable time and money. in real situations, some parameters are uncertain hence, deterministic models cannot be more efficient. the ability of two-stage stochastic programming is to make a long-term decision by considering effects of it in short term decisions simultaneously. in the two-stage stochastic programm...

Cooperative advertising is a key incentive offered by a manufacturer to influence retailers’ promotional decisions. We study cooperative advertising in a dynamic retail duopoly where a manufacturer sells his product through two competing retailers. We model the problem as a Stackelberg differential game in which the manufacturer announces his shares of advertising costs of the two retailers or ...