IDEAS home Printed from https://ideas.repec.org/a/wsi/igtrxx/v03y2001i01ns0219198901000282.html
   My bibliography  Save this article

Stackelberg Leadership In A Marketing Channel

Author

Listed:
  • STEFFEN JØRGENSEN

    (Department of Organization and Management, University of Southern, Denmark)

  • SIMON-PIERRE SIGUÉ

    (Universidad de Los Andes, Bogota, Colombia)

  • GEORGES ZACCOUR

    (GERAD and Marketing Department, HEC, Montréal, Canada)

Abstract

This paper provides an answer to the question who should, if any, lead a marketing channel? We consider a channel consisting of one manufacturer and one retailer where each player controls his advertising rate and margin. Supposing that advertising has a carry over effect on demand, we adopt a dynamic model. Nash and Stackelberg equilibria are characterised and outcomes compared with an efficient coordinated solution. Our findings suggest that manufacturer's leadership reduces inefficiency in a channel and is more beneficial to the consumer.

Suggested Citation

  • Steffen Jørgensen & Simon-Pierre Sigué & Georges Zaccour, 2001. "Stackelberg Leadership In A Marketing Channel," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 13-26.
    • Handle: RePEc:wsi:igtrxx:v:03:y:2001:i:01:n:s0219198901000282
    DOI: 10.1142/S0219198901000282
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219198901000282
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219198901000282?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    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, 2019. "Fighting store brands through the strategic timing of pricing and advertising decisions," European Journal of Operational Research, Elsevier, vol. 275(2), pages 635-647.
    2. Karray, Salma & Martín-Herrán, Guiomar & Sigué, Simon Pierre, 2022. "Managing advertising investments in marketing channels," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. Nawel Amrouche & Guiomar Martín-Herrán & Georges Zaccour, 2008. "Feedback Stackelberg equilibrium strategies when the private label competes with the national brand," Annals of Operations Research, Springer, vol. 164(1), pages 79-95, November.
    4. Pietro Giovanni & Maria Roselli, 2012. "Overcoming the drawbacks of a revenue-sharing contract through a support program," Annals of Operations Research, Springer, vol. 196(1), pages 201-222, July.
    5. Karray, Salma & Martín-Herrán, Guiomar, 2022. "The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing," International Journal of Production Economics, Elsevier, vol. 244(C).
    6. Marta Biancardi & Andrea Di Liddo & Giovanni Villani, 2022. "How do Fines and Their Enforcement on Counterfeit Products Affect Social Welfare?," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1547-1573, December.
    7. Chan, Tat Y. & Narasimhan, Chakravarthi & Yoon, Yeujun, 2017. "Advertising and price competition in a manufacturer-retailer channel," International Journal of Research in Marketing, Elsevier, vol. 34(3), pages 694-716.
    8. Weimin Ma & Rong Cheng & Hua Ke, 2018. "Impacts of Power Structure on Supply Chain with a Store Brand," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(04), pages 1-25, August.
    9. Arvind Shroff & Bhavin J. Shah & Hasmukh Gajjar, 2021. "Shelf space allocation game with private brands: a profit-sharing perspective," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(2), pages 116-133, April.
    10. Lu, Lijue & Navas, Jorge, 2021. "Advertising and quality improving strategies in a supply chain when facing potential crises," European Journal of Operational Research, Elsevier, vol. 288(3), pages 839-851.
    11. 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).
    12. Martín-Herrán, Guiomar & Sigué, Simon-Pierre & Zaccour, Georges, 2010. "The Dilemma of Pull and Push-Price Promotions," Journal of Retailing, Elsevier, vol. 86(1), pages 51-68.
    13. Zhang, Wenqing & Li, Shanling & Zhang, Dan & Hou, Wenhua, 2014. "On the impact of advertising initiatives in supply chains," European Journal of Operational Research, Elsevier, vol. 234(1), pages 99-107.
    14. Sigué, Simon Pierre, 2008. "Consumer and Retailer Promotions: Who is Better Off?," Journal of Retailing, Elsevier, vol. 84(4), pages 449-460.
    15. Lu, Lijue & Marín-Solano, Jesús & Navas, Jorge, 2019. "An analysis of efficiency of time-consistent coordination mechanisms in a model of supply chain management," European Journal of Operational Research, Elsevier, vol. 279(1), pages 211-224.
    16. Alessandra Buratto & Luca Grosset & Bruno Viscolani, 2007. "Advertising coordination games of a manufacturer and a retailer while introducing a new product," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(2), pages 307-321, December.
    17. N. Amrouche & G. Martín-Herrán & G. Zaccour, 2008. "Pricing and Advertising of Private and National Brands in a Dynamic Marketing Channel," Journal of Optimization Theory and Applications, Springer, vol. 137(3), pages 465-483, June.
    18. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    19. Wang, Charles X. & Qian, Zhuang & Zhao, Yabing, 2018. "Impact of manufacturer and retailer's market pricing power on customer satisfaction incentives in supply chains," International Journal of Production Economics, Elsevier, vol. 205(C), pages 98-112.
    20. Marc Escrihuela-Villar, 2019. "On Mergers in a Stackelberg Market with Asymmetric Convex Costs," Journal of Industry, Competition and Trade, Springer, vol. 19(1), pages 21-32, March.

    More about this item

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    Statistics

    Access and download statistics

    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:wsi:igtrxx:v:03:y:2001:i:01:n:s0219198901000282. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/igtr/igtr.shtml .

    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.