Volume 27, Number 1 (IJIEPR 2016)                   IJIEPR 2016, 27(1): 43-59 | Back to browse issues page

DOI: 10.22068/ijiepr.27.1.43

XML Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Esmaeili P, Rasti-Barzoki M, Hejazi R. Pricing and Advertising Decisions in a Three-level Supply Chain with Nash, Stackelberg and Cooperative Games. IJIEPR. 2016; 27 (1) :43-59
URL: http://ijiepr.iust.ac.ir/article-1-637-en.html

Assistant professor Iran , rasti@cc.iut.ac.ir
Abstract:   (1598 Views)

Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced by pricing and advertising. In this paper, three well-known approaches in the game theory including the Nash, Stackelberg and Cooperative games are exploited to study the effects of pricing and advertising decisions on the supply chain. Using these approaches, we identify optimal decisions in each case for the supplier, the manufacturer and the retailer. Also, we compare the outcomes decisions among the mentioned games. The results show that, the Cooperative and the Nash games have the highest and lowest advertising expenditure, respectively. The price level in the Nash game is more than the Stackelberg game for all three levels, and the retailer price in the Stackelberg and Cooperative games are equal. The system has the highest profit in the Cooperative game. Finally, the Nash bargaining model will be presented and explored to investigate the possibilities for profit sharing.

Full-Text [PDF 406 kb]   (766 Downloads)    
Type of Study: Research | Subject: Operations Research
Received: 2015/04/8 | Accepted: 2016/02/6 | Published: 2016/05/24

Add your comments about this article : Your username or email:
Write the security code in the box

Send email to the article author

© 2015 All Rights Reserved | International Journal of Industrial Engineering & Production Research

Designed & Developed by : Yektaweb