Differential game model of cooperative advertising in a supply chain with deteriorating items, competing retailers and reference price effects

The phenomenon of cooperative advertising in the market has always been widespread. Considering a supply chain consisting one manufacturer and multiple retailers with competitive relationships, we explore strategies for deteriorating items when demand is affected by reference price. By establishing differential game model, equilibrium profits under different situations are analysed from long-term dynamic perspective decentralised centralised control, trajectories goodwill prices over time presented. conclusions derived provide implications managers to design optimal strategies.