✦ LIBER ✦

On the coordination of dynamic marketing channels and two-part tariffs

✍ Scribed by Georges Zaccour

Book ID: 104002904
Publisher: Elsevier Science
Year: 2008
Tongue: English
Weight: 329 KB
Volume: 44
Category: Article
ISSN: 0005-1098
DOI: 10.1016/j.automatica.2007.10.009

No coin nor oath required. For personal study only.

✦ Synopsis

An important result in a static marketing channel is that the manufacturer can reach the vertically integrated channel solution through the use of a two-part wholesale price. This means that the collectively optimal solution is achieved in a decentralized way, i.e., as an equilibrium. This paper investigates under which conditions this result remains valid in a static marketing channel where demand also depends on players' advertising. Second, it shows that different results are reached when one considers a dynamic marketing channel.

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