A co-opetitive newsvendor model with product substitution and a wholesale price contract

•We study a case with two newsvendors competing and cooperating simultaneously.•We obtain equilibrium outcomes in different substitution settings.•The CM could drive the OEM out of the market, and the joint profits will be higher.•When the efficient demand increases, the OEM could be less profitable.•Horizontal decentralization and Nash bargaining price setting can limit the CM’s monopoly power.