In this book methods from Operations Research and Game Theory are used to determine companies¿
profit-maximizing strategies related to pricing and (cooperative) advertising. It considers
different supply chain structures as well as various distributions of power making it possible
to analyze both inter-echelon and intra-echelon dependencies between the companies¿ decisions.
Additionally an approach based on fuzzy set theory is presented in order to compensate for
incomplete or missing data on market characteristics. Vertical cooperative advertising is an
essential element of partnerships between manufacturers and retailers allowing manufacturers
to financially support their retailers¿ advertising efforts so as to increase sales for the
entire supply chain. Given that such programs not only make up a considerable part of many
companies¿ advertising budgets but are also a controversial subject in many business relations
their correct design is of particular importance.
