Optimal Advertising and Pricing in a Dynamic Durable Goods Supply Chain

Journal of Optimization Theory and Applications

Volumn 154, Issue 2, 2012, Pages 615-643

  Chutani, Anshuman ^a   Sethi, Suresh P ^b  

^a BINGHAMTON UNIVERSITY   (United States)

^b UNIVERSITY OF TEXAS AT DALLAS   (United States)

Author keywords

Cooperative advertising; Durable goods; Feedback Stackelberg equilibrium; Nash differential game; Sales advertising dynamics; Stackelberg differential game

Indexed keywords

COSTS; FEEDBACK; GAME THEORY; MANUFACTURE; SUPPLY CHAINS;

ADVERTIZING; COOPERATIVE ADVERTISINGS; DIFFERENTIAL GAMES; DURABLE GOODS; FEEDBACK STACKELBERG EQUILIBRIUM; NASH DIFFERENTIAL GAME; OPTIMAL PRICING; SALE-ADVERTIZING DYNAMIC; STACKELBERG DIFFERENTIAL GAMES; STACKELBERG EQUILIBRIUM;

SALES;

EID: 84864287337     PISSN: 00223239     EISSN: 15732878     Source Type: Journal    
DOI: 10.1007/s10957-012-0034-5     Document Type: Article

References (23)

1. Teng, J., Thompson, G. L.: Optimal pricing and advertising policies for new product oligopoly models. Mark. Sci. 3(2), 148-168 (1984).
2. Sethi, S. P., Prasad, A., He, X.: Optimal advertising and pricing in a new-product adoption model. J. Optim. Theory Appl. 139(2), 351-360 (2008).
3. Krishnamoorthy, A., Prasad, A., Sethi, S. P.: Optimal pricing and advertising in a durable-good duopoly. Eur. J. Oper. Res. 200(2), 486-497 (2010).
4. Bergen, M., John, G.: Understanding cooperative advertising participation rates in conventional channels. J. Mark. Res. 34, 357-369 (1997).
5. Nagler, M. G.: An exploratory analysis of the determinants of cooperative advertising participation rates. Mark. Lett. 17(2), 91-102 (2006).
6. Dant, R. P., Berger, P. D.: Modeling cooperative advertising decisions in franchising. J. Oper. Res. Soc. 47(9), 1120-1136 (1996).
7. Dutta, S., Bergen, M., John, G., Rao, A.: Variations in the contractual terms of cooperative advertising contracts: an empirical investigation. Mark. Lett. 6(1), 15-22 (1995).
8. Berger, P. D.: Vertical cooperative advertising ventures. J. Mark. Res. 9(3), 309-312 (1972).
9. Kali, R.: Minimum advertised price. J. Econ. Manag. Strategy 7(4), 647-668 (1998).
10. Huang, Z., Li, S. X., Mahajan, V.: An analysis of manufacturer-retailer supply chain coordination in cooperative advertising. Decis. Sci. 33(3), 469-494 (2002).
11. Jørgensen, S., Sigué, S. P., Zaccour, G.: Dynamic cooperative advertising in a channel. J. Retail. 76(1), 71-92 (2000).
12. Jørgensen, S., Taboubi, S., Zaccour, G.: Cooperative advertising in a marketing channel. J. Optim. Theory Appl. 110(1), 145-158 (2001).
13. Jørgensen, S., Taboubi, S., Zaccour, G.: Retail promotions with negative brand image effects: is cooperation possible? Eur. J. Oper. Res. 150(2), 395-405 (2003).
14. Karray, S., Zaccour, G.: A differential game of advertising for national brand and store brands. In: Haurie, A., Zaccour, G. (eds.) Dynamic Games: Theory and Applications, pp. 213-229. Springer, Berlin (2005).
15. He, X., Prasad, A., Sethi, S. P.: Cooperative advertising and pricing in a dynamic stochastic supply chain: feedback stackelberg strategies. Prod. Oper. Manag. 18(1), 78-94 (2009).
16. Sethi, S. P.: Deterministic and stochastic optimization of a dynamic advertising model. Optim. Control Appl. Methods 4(2), 179-184 (1983).
17. He, X., Krishnamoorthy, A., Prasad, A., Sethi, S. P.: Retail competition and cooperative advertising. Oper. Res. Lett. 39, 11-16 (2011).
18. Bass, F. M.: A new product growth model for consumer durables. Manage. Sci. 15(5), 215-227 (1969).
19. Mahajan, N., Muller, E., Bass, F. M.: New product diffusion models in marketing: a review and directions for research. J. Mark. Res. 54(1), 1-26 (1990).
20. Robinson, B., Lakhani, C.: Dynamic price models for new-product planning. Manage. Sci. 21(10), 1113-1122 (1975).
21. Krishnan, T. V., Bass, F. M., Jain, D. C.: Optimal pricing strategy for new products. Manage. Sci. 45(12), 1650-1663 (1999).
22. Krishnan, T. V., Kumar, V.: Impact of a late entrant on the diffusion of a new product/service. J. Mark. Res. 37(2), 269-278 (2000).
23. Petruzzi, N., Dada, M.: Pricing and the newsvendor problem: a review with extensions. Oper. Res. 47, 183-194 (1999).