Manufacturer-dealer chain with two sales efforts

摘要

We consider a single period manufacturer-dealer chain,in which the dealer,facing deterministic linear demand,exerts the effort (termed as sales effort) in widening market or improving the brand value,the manufacturer pays the sales effort bill,and at once only one of the two sales efforts can be exerted.The system is modeled as a Stackelburg game.Optimal decisions of the two players are given.Managerial insights based on the linear demand model include: the two players can reach win-win with each of the two sales efforts; the manufacturer should better initiate the sales effort with relatively lower cost.