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ISSN : 1026-3098
e-ISSN : 2345-3605
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Publication Information : Volume 23 - Number 5 - Successive Number 5
Type : Article
Topics of Paper : Transaction on Industrial Engineering
English Title : Supply chain coordination via two-way cooperative advertising contract considering competing retailers
English Abstract : This article addresses an optimization problem using Game Theory in an advertising environment where decisions regarding the advertising expenditure of a supply chain members must be determined. We study a cooperative (Co-op) advertising problem in a channel comprising of one manufacturer and two competing/cooperating retailers. The manufacturer leads the channel and Stackelberg game is played between the echelons. Moreover, the retailers in the downstream echelon can adopt either Collusion or Stackelberg behavior. The possibility of coordination via a two-way subsidy strategy is discussed under two scenarios in which either the participation rates are exogenously specified or the members endogenously decide on these rates. It is shown that the perfect coordination of the channel is obtained via two-way subsidy strategyin the exogenous scenario;furthermore, under the endogenous scenario, with the whole system point of view, the two-way subsidy strategyis superior to the traditional one-way strategy.
English Keywords : cooperative advertising; coordination; contract design; competing retailers; game theory
Refrences :
Number Of Pages :
From 2330 to 2340


Authors :
The AuthorAuthor SequenceOrganizationOrganization ( english )AffiliationEmailEducation
Saeed Alaei 1Department of Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran    
Dr. Mostafa Setak
(Author)
2Department of Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran Assistant Professorsetak@kntu.ac.ir 
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2016
2015
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Transactions on Chemistry and Chemical Engineering
Transactions on Computer Science & Engineering and Electrical Engineering
Transactions on Industrial Engineering
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2014
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Transactions on Computer Science & Engineering and Electrical Engineering
Transactions on Industrial Engineering
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2013
Transactions on Civil Engineering
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Transactions on Chemistry and Chemical Engineering
Transactions on Computer Science & Engineering and Electrical Engineering
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