Abstract
The paper is concerned with intertemporal conflict and cooperation between a manufacturer and a retailer in a vertical marketing channel. The setup is a differential game model of pricing and advertising. First, we identify a number of issues that must be addressed when the parties wish to establish and sustain a coordinated outcome. Second, we study Markovian marketing strategies in a game of simultaneous play. These outcomes will serve as disagreement outcomes if cooperation fails to be established. Third, a cooperative solution is identified, invoking some basic requirements of such a solution.
Research supported by NSF, Denmark and NSERC, Canada
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Jørgensen, S., Zaccour, G. (1996). Dynamic Marketing Strategies in a Two-Member Channel. In: Jørgensen, S., Zaccour, G. (eds) Dynamic Competitive Analysis in Marketing. Lecture Notes in Economics and Mathematical Systems, vol 444. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45753-1_12
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DOI: https://doi.org/10.1007/978-3-642-45753-1_12
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