The paper provides a survey of the literature which utilizes dynamic state-space games to formulate and analyze intertemporal, many decision-maker problems in the economics and management of pollution.

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Most of the cooperative advertising literature has focused on studying the e¤ects of such programs considering marketing variables. This paper integrates production and inventory management with pricing and advertising considerations to assess the e¤ects of cooperative advertising programs in bilateral monopolies. We consider a supply chain where a Vendor Managed Inventory (VMI) along with a consignment contract is implemented to coordinate the chain. We develop and solve a di¤erential model for two games. The …rst one is a benchmark scenario where no cooperative advertising is o¤ered, while the manufacturer o¤ers the cooperative program in the second game. The main results show that cooperative advertising programs, usually considered as successful marketing initiatives, can be very di¢ cult to implement in a supply chain undertaking a VMI policy with a consignment contract, in which operations and marketing interface is taken into account. A cooperative program mainly hurts the manufacturer's pro…ts, and can be pro…t-Pareto-improving only in a few cases. Although the retailer is generally willing to receive a support from the manufacturer, she can opt for a non-cooperative program when the largest part of the supply chain pro…ts goes to the manufacturer. We developed several special cases to strengthen our …ndings.