Abstract: In this paper, the structure of industrial competition is studied in global market's view, and the structure of upper supply chain is constructed in Two-echelon. Applying the basic idea of game theory, utility function of manufacturer is established based on two kinds of competition strategies, and possible competition strategies of manufacturers and supplier are analyzed under asymmetric and symmetric conditions. The results indicate: manufacturers would have three Nash equilibrium strategies under the two conditions and supplier would be possible to choose cost per unit in terms of opportunism. This study will provide a valuable guidance to the decision of supply chain.

Key words: symmetric information, manufacturers&rsquo, effort, Nash equilibrium