Seller-buyer relationship when end demand is sensitive to price and promotion

In this paper, we consider a seller-buyer channel in which marketing expenditure is an endogenous decision for the buyer. We assume that both the unit marketing expenditure and the unit price charged by the buyer influence the end demand for the product. We model the seller-buyer relationship as a non-cooperative as well as a cooperative game. We investigate the non-cooperative game from two perspectives: the Seller-Stackelberg model and the …