@inproceedings{966d7716dae44676b80556eae3ee3418,
title = "Dynamic marketing model: optimization of retailer{\textquoteright}s role",
abstract = "We study a vertical control distribution channel in which a manufacturer sells a single kind of good to a retailer. The state variables are the cumulative sales and the retailer{\textquoteright}s motivation. The manufacturer chooses wholesale price discount while retailer chooses pass-through. We assume that the wholesale price discount increases the retailer{\textquoteright}s sale motivation thus improving sales. In contrast to previous settings, we focus on the maximization of retailer{\textquoteright}s profit with respect to pass-through. The arising problem is linear with respect to both cumulative sales and the retailer{\textquoteright}s motivation, while it is quadratic with respect to wholesale price discount and pass-through. We obtain a complete description of optimal strategies and optimal trajectories. In particular, we demonstrate that the number of switches for change in the type of optimal policy is no more than one.",
keywords = "Pass-through, Pricing, Retailer, Sale motivation",
author = "Igor Bykadorov",
year = "2019",
month = jan,
day = "1",
doi = "10.1007/978-3-030-10934-9_28",
language = "English",
isbn = "9783030109332",
series = "Communications in Computer and Information Science",
publisher = "Springer-Verlag GmbH and Co. KG",
pages = "399--414",
editor = "Yury Kochetov and Michael Khachay and Yury Evtushenko and Vlasta Malkova and Mikhail Posypkin and Milojica Jacimovic",
booktitle = "Optimization and Applications - 9th International Conference, OPTIMA 2018, Revised Selected Papers",
address = "Germany",
note = "9th International Conference on Optimization and Applications, OPTIMA 2018 ; Conference date: 01-10-2018 Through 05-10-2018",
}