A game theoretic approach for green and non-green product pricing in chain-to-chain competitive sustainable and regular dual-channel supply chains

Jamali, Mohammad-Bagher; Rasti−Barzoki, Morteza

doi:10.1016/j.jclepro.2017.09.181

Cited by 260 publications

(135 citation statements)

References 43 publications

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“…Jamali and Rasti-Barzoki [12] studied the chain-chain competition of two dual-channel SCs under centralized and decentralized scenarios. They found that the centralized scenario achieves a higher green level of production than the decentralized one does.…”

Section: Literature Reviewmentioning

confidence: 99%

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A Game Theoretic Approach for Improving Environmental and Economic Performance in a Dual-Channel Green Supply Chain

Cheng

2018

Sustainability

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Abstract:In this paper, we investigate economic performance and environmental performance of a dual-channel green supply chain (GSC). Given that most relevant literature still focus on the descriptive aspect of GSC, we adopt game theoretic approach rather than qualitative analysis method to address the following problems: (1) How can the integration of environmental and economic sustainability goals be achieved in GSC? (2) What is the impact of customer environmental awareness on the green level and profitability of the GSC? (3) How does the market demand changes in the presence of the online direct channel in addition to the traditional one? We establish four game models, which are decentralized scenario, centralized scenario, retailer-led revenue-sharing scenario and bargaining revenue-sharing scenario. In the decentralized scenario, participants in a GSC make individual decisions based on their specific interests. In the centralized scenario, the GSC is regarded as a whole and the participants make collective decisions to maximize the overall profit of the GSC. In addition, in the two revenue-sharing scenarios, revenue-sharing contracts as the important profit coordination systems are set up and the revenue-sharing ratio is determined either by the retailer or through bargaining. Moreover, the cost of green product research and development, customer environmental awareness and price sensitivity are also taken into account in the four scenarios. By comparing and analyzing the four game models, we recommend the two revenue-sharing scenarios as the optimum choice and improving green awareness as a feasible strategy to achieve the integration of economic and environmental goals of the GSC. Additionally, we find that online sales has become a major distribution channel of the GSC.

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Section: Literature Reviewmentioning

confidence: 99%

“…This indicates that the customers of a given channel are more sensitive to the price changes in this channel than that in the other channel. This assumption is made in many studies, for instance literature [12]. (3) To advance green product R&D, manufacturers need to invest a lot of funds.…”

Section: Assumptionsmentioning

confidence: 99%

A Game Theoretic Approach for Improving Environmental and Economic Performance in a Dual-Channel Green Supply Chain

Cheng

2018

Sustainability

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“…We conducted a quantitative economic analysis to examine the impact of a carbon labelling scheme on the manufacturer's and retailer's pricing strategies, the product carbon footprint decision, the consumer demand for the carbon-labelled products, the total carbon emissions, and their profits. We use a Stackelberg game [41][42][43] because it helps us to know the analytical expression of the manufacturing firm's and the retailer's optimal decisions, and the Stackelberg game has been widely used to study the decision-making behaviours in the supply chain [44][45][46]. As noted by Benjaafar et al [36], the models-based research could be beneficial to understanding how accounting for carbon emissions may affect operational decisions across the supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and Low-Carbon Investment Decisions in an Emission Dependent Supply Chain under a Carbon Labelling Scheme

et al. 2018

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Abstract:A low-carbon policy attracts the interests of businesses, consumers, and policy makers. The purpose of this paper is to investigate how a carbon labelling scheme could be integrated into operational decision-making for manufacturers and retailers. Three game theoretic models of a supply chain with one manufacturer and one retailer are built to investigate a manufacturer and retailer's pricing and investment decision for products with different initial carbon footprints considering consumer environmental awareness. Through a systematic comparison and numerical analysis, the results show that a carbon labelling scheme can significantly reduce the overall carbon emission supply chain and have an initially negative impact on the manufacturer and retailer's profits. However, in the medium-long run, manufacturers and retailers could yet achieve profitability through continuously investing in low-carbon technology.

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“…The effect of greenness on demand on sales price, product greenness and the impact of supply chain members' profits [11].…”

Section: Introductionmentioning

confidence: 99%

“…More scholars on the status quo of dual-channel research are based on the differences between online and offline channels. A few scholars study dual-channel green Y.-M. Xu, P. Zhang Journal of Service Science and Management supply chain decisions that consider the greenness of products such as Li (2016) [10] and Jamali (2017) [11]. They are highly instructive based on the premise that manufacturers are dominant and consistent in price both online and offline.…”

Section: Introductionmentioning

confidence: 99%

Decision-Making in Dual-Channel Green Supply Chain Considering Market Structure

Xu¹,

Zhang²

2018

JSSM

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With the increasing awareness of environmental protection among consumers, green products are increasingly favored by the general public. The rapid development of e-commerce has increased the channels for consumers to contact and purchase green products. In this paper, consumers' perceived differences in product greenness among different channels are considered and three models of manufacturer-dominated Stackelberg game, retailer-dominated Stackelberg game and Nash equilibrium with equal power are constructed based on the difference pricing between online and offline channels. Also, the results of dual-channel structure are compared with those of single-channel respectively. The results show that when the green R & D costs are relatively high, manufacturers and retailers are motivated to compete as channel leaders, but for the entire supply chain, Nash's decision-making can improve product greenness and profitability of the supply chain. When green R & D costs are low, manufacturers' profits are higher under asymmetric power supply chains and lowest under vertical Nash decisions. Under the three kinds of power structure, product greenness and manufacturer's profit are higher than single channel under dual-channel structure. The comparison of retailer's profit in dual channel and single channel depends on green R & D costs.

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A game theoretic approach for green and non-green product pricing in chain-to-chain competitive sustainable and regular dual-channel supply chains

Cited by 260 publications

References 43 publications

A Game Theoretic Approach for Improving Environmental and Economic Performance in a Dual-Channel Green Supply Chain

A Game Theoretic Approach for Improving Environmental and Economic Performance in a Dual-Channel Green Supply Chain

Pricing and Low-Carbon Investment Decisions in an Emission Dependent Supply Chain under a Carbon Labelling Scheme

Decision-Making in Dual-Channel Green Supply Chain Considering Market Structure

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