Abstract: Joining the points management platform under the retailer point-sharing policy is considered, and a differential game is used to study the optimal long-term profit and the optimal advertising effect trajectory of two retailers and the points management platform when the advertising effect decays with time. The results show that: consumers pay more attention to the promotion level than the promotion effectiveness, the cost sharing mechanism under decentralized decision-making can promote the advertising effect of products and the profits of all parties, while the fierce competition among retailers consumes the profits of each other and the points management platform. Finally, a numerical example is given to verify the importance of the conclusions, which provides reference for retailers to choose points alliance and points management platform.

Key words: point-sharing policy, promotion, points management platform, advertising effect, differential game