Abstract:Considering the problem that two complementary products are exploved in a two-stage green supply chain with two manufacturers and a retailer, and the manufacturer 1 exerts the green manufacturing level to influence and increase the demand, the paper establishes and investigates following five different pricing models, i.e., the centralized model, the MS-Bertrand model, the MS-Stackelberg model, the RS-Bertrand model, and the RS-Stackelberg model. The results show that, 1) the green manufacturing level decrease with the green investment, the centralized supply chain model is the most favorable for the green manufacturing level, and the retail prices of the products are higher under the decentralized models than these under the centralized model, 2) the green investment impacts on the manufacturer 1's profit, and the manufacturer2 will benefit from the manufacturer1's green investment because of the nature of the complementary product, 3) under the decentralized models, the retail prices of the product1(product2) decrease with the cross-price sensitivity of the product 1(product2), and increase with the cross-price sensitivity of the product2(product1).