Abstract: Deciding the rebate between the supplier and the retailer in a two-stage supply chain is a common problem.Supplier’s brand and retailer’s network scale are the two main factors in deciding bargaining power.In this paper,a model containing these two and other important factors is developed and analyzed.Furthermore,a kind of adverse selection resulted from asymmetry information is extended from the result of the model.

Key words: supply chain, price rebate, game, bargaining power, brand