IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v34y2006i5p501-504.html
   My bibliography  Save this article

A note on "Cooperative advertising, game theory and manufacturer-retailer supply chains"

Author

Listed:
  • Xie, Jinxing
  • Ai, Song

Abstract

This note extends the results in the manufacturer-dominated game model of the paper by Li et al. (Omega 30 (2002) 347) to the case where the manufacturer's marginal profit is not large enough. In such situations, the profit of the entire supply chain under the co-op advertising mode is higher than the one under the Stackelberg game, which is consistent with the results of the original paper. However, the advertising expenditures of the manufacturer and the retailer under the co-op advertising model are not always larger than those under the Stackelberg game, which is different from the results of the original paper. Furthermore, the results are also compared with the simultaneous move game of the paper by Huang and Li (Eur. J. Oper. Res. 135 (2001) 527). The manufacturer always prefers the leader-follower structure rather than the simultaneous move structure, which is consistent with the results of the original paper. However, the retailer always prefers the simultaneous move structure rather than the leader-follower structure, which differs from the results of the original paper.

Suggested Citation

  • Xie, Jinxing & Ai, Song, 2006. "A note on "Cooperative advertising, game theory and manufacturer-retailer supply chains"," Omega, Elsevier, vol. 34(5), pages 501-504, October.
    • Handle: RePEc:eee:jomega:v:34:y:2006:i:5:p:501-504
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(05)00030-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Li, Susan X. & Huang, Zhimin & Zhu, Joe & Chau, Patrick Y. K., 2002. "Cooperative advertising, game theory and manufacturer-retailer supply chains," Omega, Elsevier, vol. 30(5), pages 347-357, October.
    2. Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karray, Salma & Martín-Herrán, Guiomar & Sigué, Simon-Pierre, 2017. "Cooperative advertising for competing manufacturers: The impact of long-term promotional effects," International Journal of Production Economics, Elsevier, vol. 184(C), pages 21-32.
    2. Vincent Knight & Izabela Komenda & Jeff Griffiths, 2017. "Measuring the price of anarchy in critical care unit interactions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(6), pages 630-642, June.
    3. Ata Allah Taleizadeh & Zahedeh Cheraghi & Leopoldo Eduardo Cárdenas-Barrón & Mahsa Noori-Daryan, 2021. "Studying the Effect of Noise on Pricing and Marketing Decisions of New Products under Co-op Advertising Strategy in Supply Chains: Game Theoretical Approaches," Mathematics, MDPI, vol. 9(11), pages 1-26, May.
    4. Jørgensen, Steffen & Zaccour, Georges, 2014. "A survey of game-theoretic models of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 237(1), pages 1-14.
    5. Li, Xiang & Li, Yongjian & Cao, Wenjing, 2019. "Cooperative advertising models in O2O supply chains," International Journal of Production Economics, Elsevier, vol. 215(C), pages 144-152.
    6. De Giovanni, Pietro & Karray, Salma & Martín-Herrán, Guiomar, 2019. "Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 272(2), pages 465-480.
    7. Karray, Salma & Martín-Herrán, Guiomar & Zaccour, Georges, 2017. "Assessing the profitability of cooperative advertising programs in competing channels," International Journal of Production Economics, Elsevier, vol. 187(C), pages 142-158.
    8. Karray, Salma, 2015. "Cooperative promotions in the distribution channel," Omega, Elsevier, vol. 51(C), pages 49-58.
    9. Khouja, Moutaz & Park, Sungjune & Cai, Gangshu (George), 2010. "Channel selection and pricing in the presence of retail-captive consumers," International Journal of Production Economics, Elsevier, vol. 125(1), pages 84-95, May.
    10. Michael Caputo & Chen Ling, 2015. "Intrinsic Comparative Dynamics of Locally Differentiable Feedback Stackelberg Equilibria," Dynamic Games and Applications, Springer, vol. 5(1), pages 1-25, March.
    11. A. Ahmadi Javid & P. Hoseinpour, 2011. "A Game-Theoretic Analysis for Coordinating Cooperative Advertising in a Supply Chain," Journal of Optimization Theory and Applications, Springer, vol. 149(1), pages 138-150, April.
    12. Niu, Baozhuang & Wang, Yulan & Guo, Pengfei, 2015. "Equilibrium pricing sequence in a co-opetitive supply chain with the ODM as a downstream rival of its OEM," Omega, Elsevier, vol. 57(PB), pages 249-270.
    13. Martín-Herrán, Guiomar & Sigué, Simon P., 2017. "An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?," Journal of Business Research, Elsevier, vol. 70(C), pages 67-73.
    14. Van Gorder, Robert A. & Caputo, Michael R., 2010. "Envelope theorems for locally differentiable open-loop Stackelberg equilibria of finite horizon differential games," Journal of Economic Dynamics and Control, Elsevier, vol. 34(6), pages 1123-1139, June.
    15. Dridi, Dhouha & Ben Youssef, Slim, 2015. "Local advertising externalities and cooperation in one manufacturer-two retailers channel," MPRA Paper 62705, University Library of Munich, Germany.
    16. Martín-Herrán, Guiomar & Sigué, Simon Pierre, 2023. "An integrative framework of cooperative advertising with reference price effects," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    17. Karray, Salma, 2013. "Periodicity of pricing and marketing efforts in a distribution channel," European Journal of Operational Research, Elsevier, vol. 228(3), pages 635-647.
    18. Szmerekovsky, Joseph G. & Zhang, Jiang, 2009. "Pricing and two-tier advertising with one manufacturer and one retailer," European Journal of Operational Research, Elsevier, vol. 192(3), pages 904-917, February.
    19. Aust, Gerhard & Buscher, Udo, 2014. "Cooperative advertising models in supply chain management: A review," European Journal of Operational Research, Elsevier, vol. 234(1), pages 1-14.
    20. Ahmadi-Javid, Amir & Hoseinpour, Pooya, 2012. "On a cooperative advertising model for a supply chain with one manufacturer and one retailer," European Journal of Operational Research, Elsevier, vol. 219(2), pages 458-466.
    21. Zhou, Yong-Wu & Li, Jicai & Zhong, Yuanguang, 2018. "Cooperative advertising and ordering policies in a two-echelon supply chain with risk-averse agents," Omega, Elsevier, vol. 75(C), pages 97-117.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Peng, 2021. "Optimal generic and brand advertising efforts in a decentralized supply chain considering customer surplus," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    2. Yu, Lili & He, Xiuli & Zhang, Juan & Xu, Chuanyong, 2021. "Horizontal cooperative advertising with advertising threshold effects," Omega, Elsevier, vol. 98(C).
    3. Chen, Kebing & Xiao, Tiaojun, 2009. "Demand disruption and coordination of the supply chain with a dominant retailer," European Journal of Operational Research, Elsevier, vol. 197(1), pages 225-234, August.
    4. He, Yi & Wang, Hang & Guo, Qiang & Xu, Qingyun, 2019. "Coordination through cooperative advertising in a two-period consumer electronics supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 179-188.
    5. M A Krajewska & H Kopfer & G Laporte & S Ropke & G Zaccour, 2008. "Horizontal cooperation among freight carriers: request allocation and profit sharing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1483-1491, November.
    6. Zhou, Yong-Wu & Li, Jicai & Zhong, Yuanguang, 2018. "Cooperative advertising and ordering policies in a two-echelon supply chain with risk-averse agents," Omega, Elsevier, vol. 75(C), pages 97-117.
    7. Xu, Xiaoyan & Choi, Tsan-Ming & Chung, Sai-Ho & Guo, Shu, 2023. "Collaborative-commerce in supply chains: A review and classification of analytical models," International Journal of Production Economics, Elsevier, vol. 263(C).
    8. Gou, Qinglong & Shao, Jing & Wang, Xin & Yu, Lili, 2020. "Co-op supply chains with a local media company: Models and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    9. Chunguang Bai & Joseph Sarkis, 2016. "Supplier development investment strategies: a game theoretic evaluation," Annals of Operations Research, Springer, vol. 240(2), pages 583-615, May.
    10. De Giovanni, Pietro & Karray, Salma & Martín-Herrán, Guiomar, 2019. "Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 272(2), pages 465-480.
    11. Bylka, Stanislaw, 2009. "Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 118(1), pages 243-252, March.
    12. Zu-Jun, Ma & Zhang, Nian & Dai, Ying & Hu, Shu, 2016. "Managing channel profits of different cooperative models in closed-loop supply chains," Omega, Elsevier, vol. 59(PB), pages 251-262.
    13. Karray, Salma, 2015. "Cooperative promotions in the distribution channel," Omega, Elsevier, vol. 51(C), pages 49-58.
    14. Zhang, Juan & Gou, Qinglong & Liang, Liang & Huang, Zhimin, 2013. "Supply chain coordination through cooperative advertising with reference price effect," Omega, Elsevier, vol. 41(2), pages 345-353.
    15. Guilan Yan & Yi He, 2020. "Coordinating pricing and advertising in a two-period fashion supply chain," 4OR, Springer, vol. 18(4), pages 419-438, December.
    16. Salma Karray & Chirag Surti, 2016. "Channel coordination with quantity discounts and/or cooperative advertising," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5317-5335, September.
    17. Ata Allah Taleizadeh & Zahedeh Cheraghi & Leopoldo Eduardo Cárdenas-Barrón & Mahsa Noori-Daryan, 2021. "Studying the Effect of Noise on Pricing and Marketing Decisions of New Products under Co-op Advertising Strategy in Supply Chains: Game Theoretical Approaches," Mathematics, MDPI, vol. 9(11), pages 1-26, May.
    18. Esmaeili, M. & Zeephongsekul, P., 2010. "Seller-buyer models of supply chain management with an asymmetric information structure," International Journal of Production Economics, Elsevier, vol. 123(1), pages 146-154, January.
    19. Abhishek Srivastava & Abhishek Chakraborty & Arqum Mateen, 2022. "Role of power imbalance on channel coordination under greening investments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1522-1554, December.
    20. Shi, Hongyan & Liu, Yunchuan & Petruzzi, Nicholas C., 2019. "Informative advertising in a distribution channel," European Journal of Operational Research, Elsevier, vol. 274(2), pages 773-787.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:34:y:2006:i:5:p:501-504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.