Optimal pricing strategies with two substitutable products under decentralized decision

A base model with deterministic demands for two type of substitutable products was developed in this paper. Two competitive retailers simultaneously sell the same two type of substitutable products, the purpose of this paper is to explore how the competitive retailers to determine their own two productspsila retail prices. Using game-theoretical approach, we examine each firmpsilas pricing strategies and get the closed-form expressions, also explore the role of the two retailers over two different scenarios (Stackelberg game and vertical Nash game).