Game Theory Study on Distributors'''' Alliance to Gain Competitive Advantage in Marketing Channel

Using the Cournot Game Model, this paper has analyzed the motivation of the distributors' alliance to gain competitive advantage in marketing channel. At first, this paper separately analyzed the advantage of alliance in the situation of oneshort game and infinitely repeated game, then, based on the analysis of distributors' betrayal of the alliance under infinitely repeated game, the conditions to maintain the distributors alliance are put forward and discussed.