Showing 1 - 10 of 43
This paper analyzes dynamic advertising and pricing policies in a durable-good duopoly. The proposed infinite …-horizon model, while general enough to capture dynamic price and advertising interactions in a competitive setting, also permits … closed-form solutions. We use differential game theory to analyze two different demand specifications - linear demand and …
Persistent link: https://www.econbiz.de/10012759421
study cooperative advertising in a dynamic retail duopoly where a manufacturer sells his product through two competing …Cooperative advertising is a key incentive offered by a manufacturer to influence retailers' promotional decisions. We … retailers. We model the problem as a Stackelberg differential game in which the manufacturer announces his shares of advertising …
Persistent link: https://www.econbiz.de/10012832937
Cooperative advertising is an important mechanism used by manufacturers to influence retailers' promotional decisions …. In a typical arrangement, the manufacturer agrees to reimburse a fraction of a retailer's advertising cost, known as the … optimal advertising efforts. We obtain feedback Stackelberg strategies consisting of manufacturer's subsidy rates and …
Persistent link: https://www.econbiz.de/10012832940
capturing market share from competitors and their generic-advertising strategy for increasing primary demand for the category … differential game theory, optimal advertising decisions are obtained for a dynamic duopoly with symmetric or asymmetric competitors …To increase the sales of their products through advertising, firms must integrate their brand-advertising strategy for …
Persistent link: https://www.econbiz.de/10012766678
Cooperative advertising is an important incentive offered by a manufacturer to influence retailers' promotional … decisions. We analyze a retail market duopoly where one or both of competing retailers are supported by the manufacturer in … their advertising costs. We model the problem as a Stackelberg differential game in which the manufacturer announces his …
Persistent link: https://www.econbiz.de/10014045854
Optimal control theory is employed to derive explicitly the optimal (profit maximizing) price of a durable new product over time. The sales rate dynamics depends on the product price and on the unsold portion of the market. Specifically, the hazard rate (i.e. the probability of a purchase by a...
Persistent link: https://www.econbiz.de/10014046439
Cooperative advertising is an incentive offered by a manufacturer to influence retailers' promotional decisions. We … study a dynamic durable goods duopoly with a manufacturer and two independent and competing retailers. The manufacturer as a … Stackelberg leader announces his wholesale prices and his shares of retailers' advertising costs, and the retailers in response …
Persistent link: https://www.econbiz.de/10013122003
We propose a model to assess the value of a distributor in a dynamic stochastic cooperative advertising supply chain in …, the distributor also intermediates the pricing and advertising decisions between the manufacturer and the retailer. For … added by the distributor to the supply chain depends critically on the elasticity of the demand function for the product, a …
Persistent link: https://www.econbiz.de/10012837118
Cooperative (co-op) advertising is an important instrument for aligning manufacturer and retailer decisions in supply … chains. In this, the manufacturer announces a co-op advertising policy, i.e., a participation rate that specifies the … percentage of the retailer's advertising expenditure that it will provide. In addition, it also announces the wholesale price. In …
Persistent link: https://www.econbiz.de/10012766775
(possibly) advertising decisions under threat of entry. The optimal price ­advertising policies for these models are … the resulting threat of entry by a higher level of advertising …
Persistent link: https://www.econbiz.de/10012832867