Integrity Marketing: The Cooperative Games between Dealers and Consumers

According to the traditional transaction theory, the relationship between dealers and consumers is a zero-sum game. Because of the asymmetric information, dealers often renege on their promise to seek for the short-term benefit. As a result, consumers take the ldquogrim strategyrdquo to retaliate. With the development of market economy, the cooperation between dealers and consumers to optimize the total benefit is feasible. Integrity Marketing comes into existence. Based on the game theory, This paper will explain the necessity of integrity marketing from two aspects including one-short game and repeated game.