Price competition between supply chains under crossed structure

With the development of global economic integration, competition between enterprises has evolved to competition between supply chains. It is not enough for enterprise to focus on supply chain performance of its own, because neglecting behavior of rival, decision often deviates from optimal strategy, which can result in failure in competition. We studied the price competition of two-echelon supply chains that exists crossed structure, and compared price and profit in three different scenario, which consist of manufacturer as Stackelberg leader (MS) scenario, retailer as Stackelberg leader(RS) scenario, and decentralized decision(DD) scenario between manufacture and retailer. We prove that competition is most dramatic in DD scenario, and least in MS scenario. Finally, we discussed the influence of different parameters to price decision of members in supply chains.