Game analysis of supply chain cooperative advertising from the perspective of the advertising effort level

The initial focus of the research of cooperative advertising relationship in the supply chain is the relationship in which the manufacturer is the leader, while the retailer is the follower. However, with the continuous social and economic development, the status of the manufacturer and retailer has changed significantly in cooperative advertising, and the status of the retailer is likely to equal to or exceed that of the manufacturer. From the perspective of the advertising effort level, the relationship between the advertising effort level and cost is considered in the cooperative advertising model. Then the optimal cooperative advertising schemes are respectively discussed in Stackelberg equilibrium model, Nash equilibrium model and a partnership co-op advertising model by game theory. Besides, the cooperative advertising strategies that manufacturers and retailers should adopt under different game situations are suggested through comparative analyses.