A survey of Stackelberg differential game models in supply and marketing channels

Abstract

Stackelberg differential game models have been used to study sequential decision making in noncooperative games in diverse fields. In this paper, we survey recent applications of Stackelberg differential game models to the supply chain management and marketing channels literatures. A common feature of these applications is the specification of the game structure: a decentralized channel composed of a manufacturer and independent retailers, and a sequential decision procedure with demand and supply dynamics and coordination issues. In supply chain management, Stackelberg differential games have been used to investigate inventory issues, wholesale and retail pricing strategies, and outsourcing in dynamic environments. The underlying demand typically has growth dynamics or seasonal variation. In marketing, Stackelberg differential games have been used to model cooperative advertising programs, store brand and national brand advertising strategies, shelf space allocation, and pricing and advertising decisions. The demand dynamics are usually extensions of the classical advertising capital models or sales-advertising response models. We begin by explaining the Stackelberg differential game solution methodology and then provide a description of the models and results reported in the literature.

Phenomena in Inverse Stackelberg Games, Part 2: Dynamic Problems

“…static, Stackelberg games were given. Some references with respect to the more recently developed dynamic Stackelberg game theory are [5] and [7][8][9].…”

Prospects of Tools from Differential Games in the Study of Macroeconomics of Climate Change

“…[36] for a review of its use in supply chain and marketing models) it is assumed that the leader announces his decision u L , which is subsequently made known to the other player, the follower. With this knowledge, the follower chooses his decision u F by minimizing his cost for this choice of u L .…”

Competition of two supply chains with different risk structures: applying market research option

“…In the literature, several researches reviewed the game theory applications in modeling conflicting goals between participants of a SC (Cachon & Netessine, 2003;He et al, 2007;Kogan &Tapiero, 2007;Leng & Parlar, 2005). Besides, competition and collaboration within a SC in a specific product market, there are some kinds of horizontal competition to attract final customers.…”