Annals of Operations Research

, Volume 164, Issue 1, pp 79–95 | Cite as

Feedback Stackelberg equilibrium strategies when the private label competes with the national brand

  • Nawel Amrouche
  • Guiomar Martín-Herrán
  • Georges Zaccour
Article

Abstract

We consider a noncooperative differential game where a retailer sells her own private label in addition to the manufacturer’s brand. We assume that each brand’s goodwill evolves according to a modified Nerlove-Arrow dynamics, in such a way that the advertising effort of one brand hurts the competitor’s goodwill stock. We characterize Feedback-Stackelberg pricing and advertising strategies and employ simulations to analyze their sensitivity to the main model parameters.

Keywords

Marketing channels Private label Advertising Pricing Differential games Feedback-Stackelberg equilibrium 

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Nawel Amrouche
    • 1
  • Guiomar Martín-Herrán
    • 2
  • Georges Zaccour
    • 3
  1. 1.Long Island UniversityLong IslandUSA
  2. 2.Departamento de Economía Aplicada (Matemáticas)Universidad de ValladolidValladolidSpain
  3. 3.Chair in Game Theory & Management, GERADHEC MontréalMontréalCanada

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