A differential game of a dual distribution channel. (English) Zbl 1154.91345
Jørgensen, Steffen (ed.) et al., Advances in dynamic game theory. Numerical methods, algorithms, and applications to ecology and economics. Most of the papers based on the presentations at the 11th international symposium on dynamics games and application, Tucson, AZ, USA, December 2004. Boston, MA: Birkhäuser (ISBN 978-0-8176-4399-7/hbk). Annals of the International Society of Dynamic Games 9, 547-568 (2007).
Summary: An infinite-horizon differential game between a manufacturer and a retailer is considered. The players control their marketing efforts, and the sales share of the online channel is the state of the system. The manufacturer seeks to maximize her profit made on both the indirect and direct channels and faces, aside from her marketing effort, a logistics cost of selling online. The retailer seeks to keep consumers buying offline through her effort. A feedback Nash equilibrium is identified and results are discussed.
For the entire collection see [Zbl 1113.91004].
For the entire collection see [Zbl 1113.91004].
