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A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach
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If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed to engage in cooperative and non-cooperative games. The current study aims to coordinate a two-level supply chain consisting of a manufacturer and a retailer. This will be achieved using cooperative advertisement along with pricing decisions such that the manufacturer offers a price discount to the retailer and the demand is affected by pricing and advertisement. Cooperative advertisement is a coordinated effort made by all the members of the supply chain to increase the customer demand, in which the retailer does the local advertisement and the manufacturer pays for a portion or all the costs of the retailer advertisement. We consider two models for manufacturer-retailer relation using the game theory: the manufacturer-Stackelberg and the retailer-Stackelberg games with asymmetric power distribution." /> <meta name="title" content="A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach" /> <meta name="googlebot" content="NOODP" /> <meta name="citation_title" content="A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach" /> <meta name="citation_author" content="Kazemi, Abolfazl" /> <meta name="citation_author_institution" content="Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran" /> <meta name="citation_author" content="SaeedMohammadi, Zohreh" /> <meta name="citation_author_institution" content="Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran" /> <meta name="citation_abstract" content="Coordinating the supply chain is among the most important subjects that is extensively addressed in the related literature. If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed to engage in cooperative and non-cooperative games. The current study aims to coordinate a two-level supply chain consisting of a manufacturer and a retailer. This will be achieved using cooperative advertisement along with pricing decisions such that the manufacturer offers a price discount to the retailer and the demand is affected by pricing and advertisement. Cooperative advertisement is a coordinated effort made by all the members of the supply chain to increase the customer demand, in which the retailer does the local advertisement and the manufacturer pays for a portion or all the costs of the retailer advertisement. We consider two models for manufacturer-retailer relation using the game theory: the manufacturer-Stackelberg and the retailer-Stackelberg games with asymmetric power distribution." /> <meta name="citation_id" content="2650" /> <meta name="citation_publication_date" content="2016/02/01" /> <meta name="citation_date" content="2016-02-01" /> <meta name="citation_journal_title" content="International Journal of Supply and Operations Management" /> <meta name="citation_issn" content="23831359" /> <meta name="citation_volume" content="2" /> <meta name="citation_issue" content="4" /> <meta name="citation_firstpage" content="1035" /> <meta name="citation_lastpage" content="1063" /> <meta name="citation_publisher" content="Kharazmi University" /> <meta name="citation_doi" content="10.22034/2015.4.05" /> <meta name="DC.Identifier" content="10.22034/2015.4.05" /> <meta name="citation_abstract_html_url" content="http://www.ijsom.com/article_2650.html" /> <meta name="citation_pdf_url" content="http://www.ijsom.com/article_2650_d5315bf244c8d8b9a68394e91ec720b5.pdf" /> <meta name="DC.Title" content="A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach" /> <meta name="DC.Source" content="International Journal of Supply and Operations Management" /> <meta name="DC.Date" content="01/02/2016" /> <meta name="DC.Date.issued" content="2016-02-01" /> <meta name="DC.Format" content="application/pdf" /> <meta name="DC.Contributor" content="Kazemi, Abolfazl" /> <meta name="DC.Contributor" content="SaeedMohammadi, Zohreh" /> <meta name="og:title" content="A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach" /> <meta name="og:description" content="Coordinating the supply chain is among the most important subjects that is extensively addressed in the related literature. If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed to engage in cooperative and non-cooperative games. The current study aims to coordinate a two-level supply chain consisting of a manufacturer and a retailer. This will be achieved using cooperative advertisement along with pricing decisions such that the manufacturer offers a price discount to the retailer and the demand is affected by pricing and advertisement. Cooperative advertisement is a coordinated effort made by all the members of the supply chain to increase the customer demand, in which the retailer does the local advertisement and the manufacturer pays for a portion or all the costs of the retailer advertisement. We consider two models for manufacturer-retailer relation using the game theory: the manufacturer-Stackelberg and the retailer-Stackelberg games with asymmetric power distribution." /> <meta name="og:url" content="http://www.ijsom.com/article_2650.html" /> <!-- WEB FONTS : use %7C instead of | (pipe) --> <link href="./themes/base/front/assets/css/social-icon-font.css" rel="stylesheet" type="text/css" /> <!-- CORE CSS --> <link href="./themes/base/front/assets/plugins/bootstrap/css/bootstrap.min.css?v=0.02" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/header.css?v=0.05" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/footer.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/essentials.css?v=0.2" rel="stylesheet" type="text/css" /> <link href="./inc/css/cookieconsent.min.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/print.css" rel="stylesheet" type="text/css" media="print"/> <!-- RTL CSS --> <link href="./themes/base/front/assets/plugins/bootstrap/css/bootstrap-ltr.min.css" rel="stylesheet" type="text/css" /> <link href=" ./themes/base/front/assets/css/gfonts-OpenSans.css" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/accordian.css" rel="stylesheet" type="text/css" /> <link href="./themes/base/front/assets/css/academicons.min.css" rel="stylesheet" type="text/css" /> <!-- user defined metatags--> <meta name="google-site-verification" content="UlbWpwabckk_wTgRmzoJCVPEYKnomtCLcftujpXdou4" /> <link href="./data/ijsom/coversheet/stl_front.css?v=0.78" rel="stylesheet" type="text/css" /> <link href="./data/ijsom/coversheet/stl.css" rel="stylesheet" type="text/css" /> <!-- Feed--> <link rel="alternate" type="application/rss+xml" title="RSS feed" href="ju.rss" /> <script type="text/javascript" src="./themes/base/front/assets/plugins/jquery/jquery.min.js?v=0.5"></script> <script type="text/javascript" src="./inc/js/common.js?v=0.1"></script> <script type="text/javascript" src="./inc/js/jquery/cookieconsent.min.js"></script> <!-- Extra Style Scripts --> <!-- Extra Script Scripts --> <script src="inc/js/article.js?v=0.31" type="text/javascript" ></script> </head> <body class="ltr len"> <div class="container" id="header"> <div class="row"> <div class="col-xs-12 text-center"> <img src="./data/ijsom/coversheet/head_en.jpg" class="img-responsive text-center" style="display:-webkit-inline-box; 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If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed to engage in cooperative and non-cooperative games. The current study aims to coordinate a two-level supply chain consisting of a manufacturer and a retailer. This will be achieved using cooperative advertisement along with pricing decisions such that the manufacturer offers a price discount to the retailer and the demand is affected by pricing and advertisement. Cooperative advertisement is a coordinated effort made by all the members of the supply chain to increase the customer demand, in which the retailer does the local advertisement and the manufacturer pays for a portion or all the costs of the retailer advertisement. We consider two models for manufacturer-retailer relation using the game theory: the manufacturer-Stackelberg and the retailer-Stackelberg games with asymmetric power distribution.</div> <p class="padding-0" style="margin:12px -2px 0 -2px"><strong>Keywords</strong></p> <ul class="block list-inline list-inline-seprator margin-bottom-6 ltr"> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105097&_kw=Supply+chain" >Supply chain</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105448&_kw=Game+theory" >Game theory</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105449&_kw=Cooperative+advertisement" >Cooperative advertisement</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105450&_kw=Discount" >Discount</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105451&_kw=Pricing" >Pricing</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105452&_kw=Coordination" >Coordination</a> </li> </ul> <p class="padding-0" style="margin:12px -2px 0 -2px"><strong>Main Subjects</strong></p> <ul class="block list-inline list-inline-seprator margin-bottom-6"> <li class="padding-3"> <a href="./?_action=article&sb=157&_sb=purchasing+%26amp%3B+sourcing+management" >purchasing & sourcing management</a> </li> </ul> </div> <hr> <div class="page_break"></div> <div class="panel"> <div class="panel-heading card-header"> <h4 class="panel-title "> <a data-toggle="collapse" data-parent="#accordions" href="#collapsesRef"><i class="fa fa-plus"></i> References</a> </h4> </div> <div id="collapsesRef" class="panel-collapse collapse"> <div class="panel-body justify"> <div class="padding-3 margin-top-3 ltr justify">Amrouche N., Yan R. 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(2014), On the impact of advertising initiatives in supply chains, European Journal of Operational Research, Vol. 234(1) PP. 99–107. <br /><br /></div> </div> </div> </div> </div> </div> <!-- /CENTER --> <!-- LEFT --> <div class="col-lg-3 col-md-3 col-sm-4"> <div class="panel panel-default my_panel-default margin-bottom-10"> <div class="panel-body ar_info_pnl" id="ar_info_pnl_cover"> <div id="pnl_cover"> <div class="row" > <div class="col-xs-6 col-md-6 nomargin-bottom"> <a href="javascript:loadModal('International Journal of Supply and Operations Management', './data/ijsom/coversheet/cover_en.jpg')"> <img src="data/ijsom/coversheet/cover_en.jpg" alt="International Journal of Supply and Operations Management" style="width: 100%;"> </a> </div> <div class="col-xs-6 col-md-6 nomargin-bottom"> <h6><a href="./issue_460_499.html">Volume 2, Issue 4 - Serial Number 4</a><br/>February 2016<div id="sp_ar_pages">Pages <span dir="ltr">1035-1063</span></div></h6> </div> </div> </div> </div> </div> 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data-toggle="collapse" data-parent="#accordion" href="#ar_info_pnl_st"><i class="fa fa-bar-chart" aria-hidden="true"></i> Statistics</a></h3> </div> <div id="ar_info_pnl_st" class="panel-collapse collapse in"> <div class="panel-body ar_info_pnl"> <ul class="list-group list-group-bordered list-group-noicon" style="display:block !important;max-height:9999px"> <li class="list-group-item"><a class="tag_a">Article View: <i>3,996</i></a></li> <li class="list-group-item"><a class="tag_a">PDF Download: <i>2,076</i></a></li> </ul> </div> </div> </div> </div> <!-- /LEFT --> </div> </section> <div id="cite-apa" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content"> <!-- Modal Header --> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">APA</h4> </div> <!-- Modal Body --> <div class="modal-body"> <p>Kazemi, A., & SaeedMohammadi, Z. (2016). A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach. <em>International Journal of Supply and Operations Management</em>, 2(4), 1035-1063. doi: 10.22034/2015.4.05</p> </div> </div> </div> </div> <div id="cite-mla" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content"> <!-- Modal Header --> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">MLA</h4> </div> <!-- Modal Body --> <div class="modal-body"> <p>Abolfazl Kazemi; Zohreh SaeedMohammadi. "A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach". <em>International Journal of Supply and Operations Management</em>, 2, 4, 2016, 1035-1063. doi: 10.22034/2015.4.05</p> </div> </div> </div> </div> <div id="cite-harvard" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content"> <!-- Modal Header --> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">HARVARD</h4> </div> <!-- Modal Body --> <div class="modal-body"> <p>Kazemi, A., SaeedMohammadi, Z. (2016). 'A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach', <em>International Journal of Supply and Operations Management</em>, 2(4), pp. 1035-1063. doi: 10.22034/2015.4.05</p> </div> </div> </div> </div> <div id="cite-vancouver" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content"> <!-- Modal Header --> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">VANCOUVER</h4> </div> <!-- Modal Body --> <div class="modal-body"> <p>Kazemi, A., SaeedMohammadi, Z. A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach. <em>International Journal of Supply and Operations Management</em>, 2016; 2(4): 1035-1063. doi: 10.22034/2015.4.05</p> </div> </div> </div> </div> </div> </div> <!-- /MAIN CONTENT --> <!-- Subscribe --> <section class="alternate padding-xxs"> </section> <!-- /Subscribe --> <!-- FOOTER --> <div class="container"> <footer id="footer"> <div class="scrollup" id="scroll" href="#"><span></span></div> <div class="row"> <div class="col-md-2"> <!-- Links --> <h4 class="">Explore Journal</h4> <ul class="footer-links list-unstyled"> <li id="fli_home"><a href="./">Home</a></li> <li id="fli_about"><a href="./journal/about">About Journal</a></li> <li id="fli_Edb"><a href="./journal/editorial.board">Editorial Board</a></li> <li id="fli_submit"><a href="./author">Submit Manuscript</a></li> <li id="fli_contactus"><a href="./journal/contact.us">Contact Us</a></li> <li id="fli_glossary"><a href="./journal/glossary">Glossary</a></li> <li id="fli_order_hrdj"><a href="./journal/subscription.form">Hard Copy Subscription</a></li> <li id="fli_sitemap"><a href="./sitemap.xml?usr">Sitemap</a></li> </ul> <!-- /Links --> </div> <div class="col-md-3"> <!-- Latest News --> <h4 class="">Latest News</h4> <ul class="footer-posts list-unstyled"> <li> <a href="./news?newsCode=173">SD of ISC: Sustainable Development of Intelligent Supply Chains based on Trends and Future Directions: Application of Novel Solution Techniques</a> <small class="ltr">2023-03-05</small> </li> </ul> <!-- /Latest News --> </div> <div class="col-md-3"> <!-- Footer Note --> <div><p><a title="Linkedin" href="http://www.linkedin.com/company/ijsom?trk=eml-cp_mktg-btn-welcome-20120607%2F"><img src="images/linkedin.jpg" alt="linkedin" /></a></p></div> <!-- /Footer Note --> </div> <div class="col-md-4"> <!-- Newsletter Form --> <h4 class="">Newsletter Subscription</h4> <p>Subscribe to the journal newsletter and receive the latest news and updates</p> <form class="validate" action="" method="post" data-success="Subscription saved successfully." data-toastr-position="bottom-right"> <input type="hidden" name="_token" value="42f6ea1daffaae5a2978273e172d9577ecb98e260fee8d9e"/> <div class="input-group"> <span class="input-group-addon"><i class="fa fa-envelope"></i></span> <input type="email" id="email" name="email" required="required" class="form-control required sbs_email" placeholder="Enter your Email" oninvalid="this.setCustomValidity('Enter a valid email address.')" oninput="this.setCustomValidity('')"> <span class="input-group-btn"> <button class="btn btn-primary mybtn" type="submit">Subscribe</button> </span> </div> </form> <!-- /Newsletter Form --> <!-- Social Icons --> <div class="margin-top-20"> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Facebook"> <i class="fa fa-facebook-square" aria-hidden="true"></i> </a> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Twitter"> <i class="fa fa-twitter-square" aria-hidden="true"></i> </a> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Linkedin"> <i class="fa fa-linkedin-square" aria-hidden="true"></i> </a> <a class="noborder" href="./ju.rss" class="social-icon social-icon-border social-rss pull-left block" data-toggle="tooltip" data-placement="top" title="Rss"><i class="fa fa-rss-square" aria-hidden="true"></i></a> </div> </div> </div> <div class="copyright" style="position: relative"> <ul class="nomargin list-inline mobile-block"> <li>© Journal Management System. <span id='sp_crt'>Powered by <a target='_blank' href='https://www.sinaweb.net/'>Sinaweb</a></span></li> </ul> </div> </footer> </div> <!-- /FOOTER --> </div> <!-- /wrapper --> <!-- SCROLL TO TOP --> <a href="#" id="toTop_old"></a> <!-- PRELOADER --> <div id="preloader"> <div class="inner"> <span class="loader"></span> </div> </div><!-- /PRELOADER --> <!-- JAVASCRIPT FILES --> <script type="text/javascript">var plugin_path = './themes/base/front/assets/plugins/';</script> <script type="text/javascript" src="./themes/base/front/assets/js/scripts.js?v=0.02"></script> <!-- user defined scripts--> <!-- Extra Script Scripts --> <script type="text/javascript"> $('ul.nav li.dropdown').hover(function() { if (window.matchMedia('(max-width: 767px)').matches) return; 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