Abstract: Considering two competing secondary supply chains composed of manufacturer and retailer where the manufacturers choose to produce green products or ordinary products, four decision scenarios are formed based on the competitiveness of two supply chains. This study investigates the influence of inter supply chain competition on the wholesale price, green degree and profits of the supply chain members. A double Stackelberg nested game model is constructed. The findings are as follows. Firstly, the inter supply chain competition has a negative correlation with the wholesale price. Secondly, the influence of the inter supply chain competition on green degree varies greatly in the four decision scenarios. Thirdly, producing green products is not always the dominant strategy of manufacturers. Therefore, both the competitor’s product decision and the degree of inter supply chain competition should be factored into the optimal strategy. Finally, weak inter supply chain competition is beneficial for the leader supply chain, while strong competition is beneficial for the follower supply chain.

Key words: green degree, inter-chain competition, product decision, dominant strategy, nested game