Abstract:
Based on the supply chain consisting of the monopoly manufacturer and the duopoly retailers, assuming that the retailer's avdertisement activity has the negative effect on the manufacturer's brand reputation, the differential game was adopted to analyze the manufacturer and the retailers’optimal advertising strategies in the dynamic structure with the following four game scenarios: Nash game and Stackelberg game with the noncooperative retailers, Nash game and Stackelberg game with the cooperative retailers. Furthermore, the feedback equilibrium outcomes in the four game structures were comparatively analyzed. The results show that the manufacuturer’s advertising invenstment was the same as each other in the four game structures, but the retailers's advertising invenstment was higher in the situation with the non coorperative retailers than that with the cooperative retailers no matter in the Nash game or Stackelberg game. The Pareto improvement for the supply chain members can be obtained when the retailers cooperate with each other.