Allocation of advertising expenditures with three approaches,proportional distribution model, the Shapley value and the nucleolus technique based on game theory

Today Advertising is considered as one of the factors in the sale and supply of products. The use of advertising and the growing costs of it have led many organizations turn to participatory activities. Dissatisfaction with participants on how to allocate costs in a competitive game is the problem that many organizations are involved with it. Although, various methods of cost allocation is presented, Cooperative game method in collective projects is mentioned. This study is the first research that use the Shapley value method and the core and the nucleolus method as equitable allocation of costs between participants in an advertising project to answer this question “How can we use the theory of games to allocate the advertising expenditures justly and in the way of win-win?” The results show the effectiveness of the methods employed compared to previous methods of cost allocation such as proportional distribution model.