In the last two decades, various studies developed static and dynamic game theory models to demonstrate that the efficiency of marketing channels can be raised through the choice of particular channel structures or the implementation of coordinating mechanisms, e.g. particular pricing schemes, cooperative advertising, channel leadership. The use of the game theory approach to deal with this topic is justified by the fact that marketing channels are composed of a set of independent institutions that interact with each other, and that channel efficiency is affected by the cooperative or non-cooperative behavior of these institutions. This paper reviews the major contributions in the literature that examined the issue of channel coordination according to the game theory approach. It highlights its main results and identifies research questions for further investigation.
Published April 2005 , 36 pages