This study explores a two-period pricing and inventory control model, employing both competitive and cooperative policies with a reference price effect for two retailers. With increasing consumer demand for fresh products and the perishable nature of such items, effective pricing and inventory management are critical for maximizing profitability. The proposed model examines how retailers can determine optimal selling prices and replenishment times while minimizing holding, ordering, and deterioration costs. A game-theoretic approach is employed to derive equilibrium pricing and replenishment strategies, considering the reference price effect on consumer behavior. The results indicate that an increase in the deterioration rate reduces retailer profits by negatively impacting the demand function. Moreover, adjustments to the reference price directly influence the profitability of each retailer.
