Game model of vertical cooperative advertising under asymmetric channel power

Channel power, as an important influence factor for the decision, behavior and benefits of the members in the supply chain affects the cooperation program. The paper establishes two different game models of cooperation advertising based on a variety of different channels power structure, it gets the equilibrium outcomes and compares the cooperation efficiency, the impact of parameters for profits and decision variable under two game models. The results demonstrate that, the cooperative advertising inputs of the manufacturer has positive correlation to its profits, the distributor´s profits, and the cooperative advertising cost of the distributor. Whatever the channel structure is, cooperative advertising is marketing policy that is propitious to both members of the channel.