Competitive decentralized distribution channels with the move sequence

We consider the decentralized distribution channel (DDC) in which manufacturers sell differentiated products to the retailers at wholesale prices and the retailers choose the retail prices. We consider the move sequence in the two-level supply chain, which is applied to both the case of determinate demand (Case I) and that of stochastic demand (Case II). In this setting, we show that it is the second-mover advantage in our Case I and the first-mover advantage in Case II, while the total supply chain performance will be better off in Case I. Furthermore, we compare these results with those from Trivedi (1998).