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Coordination models of cooperative advertising under stochastic demand in a one-manufacturer two-retailer supply chain system. (Chinese. English summary) Zbl 1240.90256
Summary: This paper explores the cooperative advertising problem by considering the situation where a manufacturer sells his product through two competing retailers facing the newsvendor problem. The effect of brand name investment and local advertising expenditures on each retailer’s demand, and the influence of competition between the retailers on each member’s optimal advertising policy are analyzed. The optimal brand name investment of the manufacturer, the optimal local advertising expenditures, and the optimal order quantity of two competing retailers under decentralized and centralized decision-making are given, respectively. Finally, a profit-sharing contract to coordinate the supply chain is presented, and how to share the supply chain’s increased profit among the supply chain members is discussed from the view of risk preference.

90B60 Marketing, advertising
91B60 Trade models
91B42 Consumer behavior, demand theory