Inventory and marketing policy in a supply chain of a perishable product

We investigate a two-echelon supply chain comprising a manufacturer and a retailer, who are engaged in a Stackelberg game in which they set the terms of a wholesale price contract for a perishable product. Product demand depends on the selling price, the investment in advertising, and the time a unit spends on the shelf before being sold. The investment in advertising can be made either by the manufacturer, by the retailer or in a cooperative...