A Study of the Joint Advertising Channels

Abstract

The study of joint advertising channels decision-making is a very difficult issue. It mainly focuses on ads investment game between a manufacturer and a retailer in a vertical supply chain. With the rise of the game theory, scholars have been starting to investigate this issue in the frame of game theory in recent years. The paper improves the existing models and introduces single-period and multi-period modified models. The paper obtains the closed-form solutions to the single-period model and the simulation results of the multi-period model. We also examine the implications of these results and obtain some insights into the real practice

Equilibrium Model of Discrete Dynamic Supply Chain Network with Random Demand and Advertisement Strategy

“…We also refer the readers to the work of [23] and the literature therein to get a general review about advertising. Based on the time dependence of parameters and decision variables, Lei et al [25] and Xiao et al [26] propose various multiperiod models to illustrate the impact of advertising investment on supply chain, whereas Chen [27], He et al [28], Tsao and Sheen [29], and Xiao et al [26] pick up the topic of stochastic environment associated with advertisement. Using game theoretic methods and from two main parts, simple marketing channels and a more complex structure, Jogensen and Zaccour [30] survey the literature on cooperative advertising in marketing channels (supply chains).…”