two supply chains, this paper investigates suppliers’ rebate strategies and their impacts on suppliers’ and retailers’ wholesale prices, selling prices and profits, etc. By means of establishing and solving a three-stagedynamic game model, we find that irrespective of the degree of substitution between products and provision of rebates from the other supplier, the supplier and retailer are always better off when they provide rebates. In addition, our results show that as long as the substitution between products is not too high, the supplier and retailer in the rebate-providing supply chain both prefer the provision of rebates from the other supplier. In this case, suppliers’ petition results in a win-win situation. Key words: Consumer Rebate; Supply Chain; Competitive Market; Game Model?
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