Abstract: The distribution channel decision is the determinant of the most profitable ways to reach the market.Therefore the distribution channel has always been a hotly contested spot for trade companies. With fast development of network information technology the scramble for distribution channel has escalated into virtual distribution channel.Concerning the structure of double hybrid distribution channels in which manufacture and retailer have brick and click distribution channels simultaneously,game models are set up to study the price competition policy between manufacture and retailer based on decentralized and centralized control policies. Finally by numerical experiments,we analyze the variation tendency of equilibrium price,sales volume and profit at different conditions and reach enlightening conclusions.

Key words: double and hybrid distribution channels, supply chain, price competition, equilibrium analysis, game model