Pricing and Warranty Policy for Substitutable Products in the Channel with Dual Manufacturers and Single Retailer

Pricing decisions and warranty period for two substitutable products in a supply chain with one common retailer and two competitive manufacturers are considered in this paper from a two-stage game theoretic. One centralized model and five decentralized models are established by considering the two manufacturers´ cooperation/noncooperation strategies and the firms´ identical bargain powers and the corresponding analytical equilibrium solutions are obtained by using game-theoretic approach. Finally, numerical studies are presented to illustrate the effectiveness of the theoretical results, and to gain additional managerial insights.