A Game-Theoretic Analysis for Coordinating Cooperative Advertising in a Supply Chain

In this paper, we investigate the coordination of cooperative advertising decisions in a supply chain with one manufacturer and one retailer. The manufacturer and the retailer invest in national and local advertising, respectively. The manufacturer also agrees to share part of the total local-advertising costs with the retailer. The model is analyzed using game theory. We also compare the results of our analysis with similar results from the literature developed for cooperative advertising.