Game-theoretical model of three-level marketing system considering environmental requirements

A novel mathematical model is introduced to express activities of parties in a vertical marketing system. The parties are represented with a manufacturer, a mediator, and a trading enterprise. The relationship between the manufacturer and the mediator is governed by a commission contract. The manufacturer produces goods while the mediator represents her interests to the trading enterprise, and the trading enterprise sells products. The model is based on the game-theoretic and hierarchical approaches. A Stackelberg equilibrium considering the requirements of sustainable development is found. The impulsion method is used as a tool of hierarchical control when solving this model. A number of typical examples followed by the interpretation are presented.