We consider a two stage advertising game in a supply chain consisting of one manufacturer and two retailers, in which the manufacturer sells its goods through the two retailers in a local market. The manufacturer plays a dominant role in the supply chain, and deicides the wholesale price and retail price.
The retailers can influence the profits for the supply chain through advertising and promotion in the local market. The analysis shows that by setting the wholesale price to the level of marginal cost, the manufacturer canmake the supply chain to maximize the profits.
XIAO Chengyong, WANG Qian.
ONE WHOLESALE PRICE COORDINATING STRATEGY FOR THE MANUFACTURER IN A TWO-STAGE ADVERTISING GAME. Journal of Systems Science and Mathematical Sciences, 2011, 31(11): 1504-1510 https://doi.org/10.12341/jssms11746