Manufacturers and suppliers offer temporary reductions (or permanent increases) in the price charged to the resellers for a variety of reasons. The trade promotion may be offered to the reseller at a single point in time or over a finite time-span. In addition, in reselling situations, the end...

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...