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Retail competition and cooperative advertising. (English) Zbl 1208.90093
Summary: We consider a cooperative advertising channel consisting of a manufacturer selling its product through a retailer in competition with another independent retailer. The manufacturer subsidizes its retailer’s advertising only when a certain threshold is positive. Moreover, the manufacturer’s support for its retailer is higher under competition than in its absence.

MSC:
90B60 Marketing, advertising
91A12 Cooperative games
91A65 Hierarchical games (including Stackelberg games)
91A23 Differential games (aspects of game theory)
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