Game Analysis between Manufacturer and Wholesaler in the Management of Distribution Channel
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Abstract:
In the distribution channel management, a good cooperation relationship between manufacture and wholesaler is an effective way for them to complement each other with their respective advantages, improve channel competitive abilities and adapt to market fluctuations. Based on their mutual cooperative relationship, a mixed game model is constituted by introducing the characteristics and postulating the prerequisites of trade between manufacturer and wholesaler, then the factors affecting their mutual cooperative relationship and the conditions of their stable cooperation are found through analyzing the mixed game model. Furthermore, a finitely repeated game model is used to analyze the cooperation between manufacturer and wholesaler, the conclusion of the cooperative qualification that influences the cooperation of both sides is given. As a result, the strategies employed by the manufacturer and wholesaler are pointed out.