We consider a cooperative advertising channel consisting of a manufacturer selling its product through a retailer in competition with another independent retailer. The manufacturer subsidizes its retailer’s advertising only when a certain threshold is positive. Moreover, the manufacturer’s support for its retailer is higher under competition than in its absence.

We develop a simple model in which firm-specific advertising has cooperative and predatory effects. Our model is set in a static spatial market where firms are naturally segmented into two distinct submarkets: several large firms located in the core, with small firms operating as a fringe. We test the net effect of the offsetting market size and market share effects of both fringe and core firm...

With the rapid development of electronic commerce, many manufacturers choose to establish dualchannel supply chains. To promote sales, the manufacturer in a dual-channel supply chain usually invests in national advertising and provides support to the retailer who promotes the goodwill through local advertisement. In our research, we use a Stackelberg differential game theoretic model to show th...

Cooperative advertising arrangements between manufacturers and resellers contain two principal components in their payment schedules: a participation rate and an accrual rate. We analyze 2,156 cooperative advertising plans to see how they vary across consumer and industrial products, as well as between convenience and nonconvenience consumer products. We also study how participation and accrual...

In this study, a contract for vertical and horizontal coordination is developed in which transportation mode and carbon emissions tax play a key role in determining the values of the contract parameters. The contract is designed for simultaneous coordination of cooperative advertising and periodic review replenishment decisions of a supplier and two competitive retailers. To obtain the optimal ...

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 ...

We investigate advertising level, pricing and production decision problems in a supply chain when demand and cost disruptions occur simultaneously. The channel consists of one manufacturer and one retailer where demand depends on retail price and advertisement expenditure. We examine the case in both cooperative game and non-cooperative Stackelberg game.

Cooperative advertising is an incentive offered by a manufacturer to influence retailers’ promotional decisions. We study a dynamic durable goods duopoly with a manufacturer and two independent and competing retailers. The manufacturer as a Stackelberg leader announces his wholesale prices and his shares of retailers’ advertising costs, and the retailers in response play a Nash differential gam...