Feedback Nash Equilibrium for Dynamic Brand and Channel Advertising in Dual Channel Supply Chain

Mohammad Kazem Sayadi () and Ahmad Makui
Additional contact information
Mohammad Kazem Sayadi: Iran University of Science & Technology
Ahmad Makui: Iran University of Science & Technology

Journal of Optimization Theory and Applications, 2014, vol. 161, issue 3, No 21, 1012-1021

Abstract: Abstract This paper investigates dynamic brand and channel advertising and their effects on market expansion and market share in a dual channel supply chain by using differential game theory. Nash equilibrium of the differential game will be obtained by the feedback approach. A sensitivity analysis was performed to assess the impact of key parameters on optimal strategies and to characterize behaviors of both the manufacturer and retailer over time. Comparative statistics show that a higher compatibility of a product with online marketing leads to a higher advertising effort for the online channel by the manufacturer, an enhanced steady state for demand of the brand as well as greater sales in the steady state through the online channel.

Keywords: Direct marketing; Dynamic advertising; Differential game theory; Feedback Nash equilibrium; Online channel (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10957-013-0479-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joptap:v:161:y:2014:i:3:d:10.1007_s10957-013-0479-1

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2

DOI: 10.1007/s10957-013-0479-1

Access Statistics for this article

Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull

More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().