This paper considers a dynamic Stackelberg game model for a manufacturer-led supply chain with risk aversion. Cooperative advertising strategy is applied to the marketing decisions of supply chain participants. Based on Stackelberg game and system dynamic theory, the game and complex dynamical behaviors are studied through the use of several methods, such as the stability region of the system, bifurcation diagram, attractor diagram, and the largest Lyapunov exponent diagram. The expected utilities of participants are given and compared by numerical simulation. The results illustrate that a series of variations in adjustment speed of advertising expenditure, participation rate of local advertising expenditure by manufacturer, risk tolerance levels, and the effect coefficient of advertising expenditure may cause a loss of stability to the system and evolve into chaos. Meanwhile, the Nash equilibrium point and the expected utility of the manufacturer and retailer will change greatly. The parameter control method is further applied to control the chaos phenomenon of the system effectively. By means of analyzing the impact of relevant factors on the game model, the manufacturer and retailer can make optimal strategy decisions in the supply chain competition. The findings of this study mainly include the following three aspects. Firstly, for market stability and maximizing revenue, the manufacturer adjusts the participation rate appropriately, avoiding too high or too low values. Secondly, the manufacturer will try to reduce their own risk tolerance level for the economic revenue, and the retailer appropriately adjust the risk tolerance level to adapt to their own development according to their own enterprise strategy. Finally, both the manufacturer and retailer reduce their own effect coefficients of advertising expenditure. Meanwhile, they will attempt to increase their opponent’s effect coefficient to gain the most revenue. The research results of this study can provide important reference for the advertising expenditure decision and revenue maximization of participants in the context of risk aversion.

This paper considers a dynamic duopoly Cournot model based on nonlinear cost functions. The model with heterogeneous players and the spillover effect is applied to the Chinese fixed broadband telecom market. We have studied its dynamic game process. The existence and stability of the Nash equilibrium of the system have been discussed. Simulations are used to show the complex dynamical behaviors of the system. The results illustrate that altering the relevant parameters of system can affect the stability of the Nash equilibrium point and cause chaos to occur. With the use of the delay feedback control method, the chaotic behavior of the model has been stabilized at the Nash equilibrium point. The analysis and results will be of great importance for the Chinese fixed broadband telecom market.