Game-Theoretic Coordination Mechanisms in Distribution Channels: Integration and Extensions for Models Without Competition

Charles A. Ingene, Sihem Taboubi and Georges Zaccour

Journal of Retailing, 2012, vol. 88, issue 4, 476-496

Abstract: A significant game-theoretic literature on the coordination of distribution channels has developed over the past three decades. We provide an extensive analysis of an important subset of this literature, channels without competition. We review four major models that build on the initial work of Jeuland and Shugan (1983) – who developed a quantity-discount schedule that induces channel members to set price and non-price, marketing-mix variables (MM-variables) at channel-coordinating levels. Moorthy (1987) criticized their schedule's complexity, arguing for a simpler wholesale contract that induces coordination by avoiding double marginalization.

Keywords: Distribution channels; Channel coordination; Game theory; Pricing (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:88:y:2012:i:4:p:476-496

DOI: 10.1016/j.jretai.2012.04.002

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