Game-theoretic Analysis of Vertical Cooperative Advertising in Supply Chain Management
Increasing competitive and cost pressure means that research and practice are focusing more and more on the collaboration between different companies located along the supply chain. While attention is often paid to the coordination between manufacturers and their suppliers, the present doctoral thesis project highlights the sales side, in particular. Game-theoretic modelling approaches are used to analyze demand-related decisions taken by manufacturers and retailers, such as the determination of prices, margins or advertising investments. The application of game theory to this business management issue enables different interaction forms or power distributions between companies to be taken into account and their impact investigated.
A special manifestation of the manufacturer/retailer collaboration is so-called vertical cooperative advertising, which is generally defined as the manufacturer's involvement in the advertising measures financed by the retailer. The manufacturer's aim in this is to increase retailer advertising, which tends to target the immediate incentive to buy, to such an extent that its own profit also increases as a result of the higher demand. This may be necessary, in particular, with smaller retailers who do not have adequate financial resources themselves.
Duration
04/2011 - 07/2014