Abstract: The introduction of advertising has become a basic way for network agents to enhance the competitiveness of agency channel.Based on competition relationship analysis of online brand direct sales and online agent of dual electronic channels,this paper establishes Stackelberg game models that involves two optimal pricings of recommendation advertising of online agent introduction.We discuss the relationship between the introduction of recommendation advertising and the recommendation advertising investment level and the online agency channel acceptability of consumers,and these factors' influence on the optimal pricing decision of dual electronic channels.The results show that the introduction of recommendation advertising can expand the online agent market,and its optimal introduction time is closely related to the recommendation advertising investment level and the online agency channel acceptability of consumers.The introduction of recommendation advertising will promote the online brand to reduce the direct selling price and increase the wholesale price,and increase the price competition pressure of online agent.No matter whether recommendation advertising is introduced or not,the optimal selling price of online agent increases with the online agency channel acceptability of consumers.The introduction of recommendation advertising by online agent within a reasonable level of recommendation advertising input level will contribute to the expansion of market demand.If the recommendation advertising is introduced,the optimal direct selling price of online brand decreases and the optimal wholesale price increases,while the optimal selling price of online agent increases with the input of recommendation advertising.The introduction of recommendation advertising will decrease the optimal direct selling price and increase the wholesale price of online brand product,and the optimal selling price of online agency will increase with the increase of the recommendation advertising input level.

Key words: dual electronic channel, recommendation advertising, online agency, Stackelberg game