Abstract
The influence of channel structure on the price decision and performance of dual-channel supply chain has been investigated. Two Stackelberg models and one Bertrand model have been developed to determine the price strategy for the dual-channel supply chain with one manufacturer and one retailer. The results demonstrate that the leadership position in Stackelberg structure has little effect on the system performance and decision. It just influences the profit allocation between the member enterprises. While compared with Stackelberg structure, the price decision and whole profit is better off in Bertrand structure. However, the Bertrand structure is unstable. Both manufacturer and retailer’s profit under Bertrand structure has been deteriorated comparing with Stackelberg structure of its leadership.
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