Abstract
The theory underlying our objective to identify the value of upstream information sharing in promotions rests on three pillars. The first pillar encompasses customer demand in promotions, which provides an understanding of how and why customers respond to promotions. The second pillar integrates the retailer’s promotion pricing and inventory decisions in a competitive environment. It is a link between the marketing literature on promotions, the operations literature on inventory management and the economics literature on game theory, describing the competition between retailers. Finally, the third pillar determines the value of information sharing between collaborating retailers and a manufacturer, where the value of information sharing depends on the type and source of the information. In the following, we shall introduce each of these three pillars based on the key papers.
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Wiehenbrauk, D. (2010). Literature Review. In: Collaborative Promotions. Lecture Notes in Economics and Mathematical Systems, vol 643. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13393-0_3
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