Dynamic Adjustment Model Of Cooperation Advertisement Game

With the rapid growth of economy, the market competition becomes more and more fierce. Supply chain management has become the focus of theory and application. Good relation of supply chain partners is a prerequisite for the effective functioning of the system. As an effective mechanism to achieve channel coordination, supply chain cooperative advertising is adopted by more and more enterprises.Researches on cooperative advertising are mainly investigating the equilibrium of the single cooperation. In this paper, the dynamic policy adjustment of multiple games is discussed. First, we select the classical demand function to establish the model, and obtain the equilibrium solution for the single game of manufacturer as the leader and retailer as the leader and non-cooperative Nash. On this basis, a further study of repeatedly game manufacturer and retailer’s dynamic adjustment strategy situation is conducted, and, respectively, as the leader of manufacturers and retailers as a leader, four game models of first adjustment of the manufacturer and first adjustment of retailers are established. Then with a practical numerical example, the new models are analyzed.The study showed that, regardless of the manufacturer or the retailer to firstly adjust the policy, a, q and t, and manufacturers and retailers’ profits tend to their stable value after the change. Furthermore, when the manufacturer is a leader, if the retailer to firstly adjust the policy, the profit of manufacturer and retailer will increase, and better than the manufacturer to firstly adjust and do not adjust the policy. When the retail is a leader, if the manufacturer to firstly adjust the policy, the profit of manufacturer and retailer will increase, and better than the retail to firstly adjust and do not adjust the policy. Thereafter, in order to take a more general numerical analysis, the model parameters will become random number. The result and numerical examples tend to the same result after analyzed. Finally, we analyze the problem of selecting strategies with manufacturer and retailer through establishing the payoff matrix when manufacturer and retailer as a leader respectively. The study found that when the manufacturer is a leader, (manufacturer late adjusting, retailer first adjusting) is the only stable strategy combination. When the retailer is a leader, (manufacturer first adjusting, retailer late adjusting) is the only stable strategy combination.The research of this paper not only improves the theory of cooperative advertising in multiple gaming, but also the part of strategy selection provides some guidance to the enterprise practice.