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October 2, 2025

Supply Chain Coordination with Dynamic Pricing Advertising and Consumer Welfare An Economic Application

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Authors

HTHongyan TangZYZhoufan YuHLHuanyu Liu

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Overview

Model assesses the impact of dynamic pricing and advertising on consumer welfare, suggesting revenue sharing coordinates supply chains effectively.

Key Points

  • Dynamic pricing strategies can enhance profitability in supply chain setups, yet lead to double marginalization under decentralization.
  • Revenue sharing contracts proved effective in aligning goals between retailers and manufacturers, maximizing overall supply chain profits.
  • Analysis indicates that effective advertising investments can significantly boost consumer surplus and improve consumer welfare.
  • Numerical simulations validate the proposed model and highlight the advantages of implementing coordinating contracts.

Cite This Study

Tang et al. (2025) studied this question.

synapsesocial.com/papers/68de5da283cbc991d0a208b0https://doi.org/10.70393/6a69656173.333230
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Pricing and Producer-Retailer Supply Chain Coordination: A Game Theory Approach2024
  2. 2Vertical Cooperative Advertising in a Dual-Channel Supply Chain Under the Premium Effect of Animal Welfare Labels2026
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  4. 4Dynamic advertising, pricing, and the optimal elongation timing of the supply chain2025 · 18 citations
  5. 5Game-Theoretic Analysis of Cooperative Advertising Decisions in Production–Retail Channels with Seasonal Demand2026