Managing strategies of product quality and price based on trust under different power structures

This paper investigates the quality and pricing decisions in a supply chain consists of one retailer two manufacturers. The updates trust value to manufacturers based on historical information product determine actual order quantity. We propose four game models by considering situations, i.e. , manufacturer-dominant scenario retailer-dominant scenario. Based theoretical numerical analysis, we obtain series valuable management insights. For example, when manufacturer with unreliable is leader competes another reliable manufacturer, retailer’s profit would eventually surpass that stronger When leader, often greater engage Stackelberg rather than Bertrand game, can make no less quality.