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Modeling dynamic cooperative advertising in a decentralized channel
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This work deals with cooperative advertising in a manufacturer-retailer supply channel using differential game theory. It considers the manufacturer as the Stackelberg leader and the retailer as the follower. It incorporates the manufacturer’s advertising effort into Sethi’s sales-advertising dynamics, and considers its effect on the retail advertising effort, the awareness share, the players’ payoffs, and the channel payoff.
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