Can Decentralization Drive Green Innovation? A Game Theoretical Analysis of Manufacturer Encroachment Selection with Consumer Green Awareness

Cao, Dân; Li, Jin; Liu, Gege; Mei, Ran

doi:10.3390/pr9060990

Cited by 5 publications

(3 citation statements)

References 46 publications

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“…Different proposals exist regarding how (un)awareness affects strategies and payoff. For example, (un)awareness can be directly implemented in a payoff function as a coefficient or a function (for example, as performed by [42,43]), thus moderating the perceived payoff and, with backward induction, the strategies. Nevertheless, such an approach does not reflect the intrinsic and probabilistic aspects of (un)awareness and provides much less opportunity for properties examination.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Dynamic Awareness and Strategic Adaptation in Cybersecurity: A Game-Theory Approach

Kostelić

2024

Games

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Awareness and human factors are becoming ever more important in cybersecurity, particularly in the context of small companies that may need more resources to deal with cybersecurity effectively. This paper introduces a theoretical framework for game analysis of the role of awareness in strategic interactions between the manager and a hacker. A computable approach is proposed based on Bayesian updating to model awareness in a cybersecurity context. The process of gaining awareness considers the manager’s perception of the properties of the hacker’s actions, game history, and common knowledge. The role of awareness in strategy choices and outcomes is analyzed and simulated, providing insights into decision-making processes for managers and highlighting the need to consider probabilistic assessments of threats and the effectiveness of countermeasures. The accuracy of the initial frequencies plays a significant role in the manager’s success, with aligned frequencies leading to optimal results. Inaccurate information on prior frequencies still outperforms complete uncertainty, emphasizing the value of any available intelligence. However, the results suggest that other awareness modeling approaches are necessary to enhance the manager’s agility and adaptiveness when the prior frequencies do not reflect the immediate attacker’s type, indicating the need for improved intelligence about cyber-attacks and examinations of different awareness modeling approaches.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Dynamic Awareness and Strategic Adaptation in Cybersecurity: A Game-Theory Approach

Kostelić

2024

Games

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“…They proposed three strategies, namely, fully mixed bundling, partially mixed bundling, and pure bundling, to increase the profitability of supply chain members. Cao et al [30] analyzed the impact of product substitution and consumer green awareness on manufacturer encroachment strategies, green innovation efforts, and supply chain performance based on the environmental attributes of the different products in the two categories. Wang et al [31] developed a two-chain model for selling heterogeneous products under an asymmetric channel structure.…”

Section: Supply Chain Considering Product Substitutionmentioning

confidence: 99%

The Impact of CSR Implement Modes on Sustainable Supply Chain Pricing and Green Decision Making

Li,

Liu,

2024

Sustainability

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Green transformation is an effective way for supply chains to achieve sustainable development. In the heterogeneous substitute product coexistence environment, it is valuable to explore the motivation behind CSR implementation as well as the advantages and differences associated with different members’ CSR implementations. In this study, we consider that the manufacturer produces both green products and ordinary products that are substitutes for each other and construct a CSR-absence scenario (Model N), a retailer implementing CSR scenario (Model R), and a manufacturer implementing CSR scenario (Model M). Applying a game-theory-based method, we obtain the optimal pricing, green decision, and supply chain profit under different scenarios. We analyze the effects of consumers’ green preference, green product function coefficient, and CSR level on decision making and performance. Through comparison and numerical analysis, we find the following: (1) Although the CSR behaviors of the manufacturer and the retailer squeeze the market demand space of the ordinary products, the greenness of the green product increases, and the retail price decreases. This not only enhances the consumer surplus of green products but also increases the profit and social welfare of the supply chain system. (2) The eco-friendliness of green products, product demand, and social welfare levels are the highest when the retailer implements CSR, followed by when the manufacturer implements CSR, and are the lowest in the CSR-absence scenario. In addition, the following retailer can enhance both its and the manufacturer’s profits through implementing CSR within a reasonable range. (3) The numerical analysis results show that, when the functional attributes of the green products meet a certain level, supply chain members implementing CSR does not affect consumers’ choice of green products.

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“…The research on the production of mixed products by enterprises is mainly divided into three aspects: the impact of product substitution on supply chain members, product pricing, and supply chain coordination. First, regarding the impact of product substitution on supply chain members, some scholars have found that product substitution promotes green innovation of manufacturers, achieves a win-win situation for manufacturers and retailers, and can reduce environmental damage and increase social welfare (Cao et al, 2021). Some scholars further considered the impact of product substitution and complementarity on supply chain members and proposed bundling strategies to improve members' profits (Chen et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Emission Reduction Strategies of a Low-Carbon Supply Chain Considering Product Substitution and Government Subsidy

Zhan

Chen

Liu

2022

Front. Environ. Sci.

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Under the background of the low-carbon economy, considering that manufacturers produce common products and low-carbon products simultaneously and the two products are substituting, three models are set up, namely, no government subsidy, subsidy based on the research and development (R&D) cost, and subsidy based on the production volume of low-carbon products. The Stackelberg game theory is used to analyze the optimal decision of the supply chain under the three methods of government subsidy, the influence of the correlation coefficient on optimal decision-making is discussed, and the effects of different government subsidy methods on the equilibrium solutions are compared and analyzed. Finally, the results are verified and illustrated by example analysis. The study found that the government subsidy reduces the sales volume of common products but increases the sales volume of low-carbon products, the emission reduction of unit low-carbon products, total emission reductions, and manufacturer’s profit. The unit emission reduction and total emission reductions are the highest when the government subsidies are according to the R&D cost, and the manufacturer’s profit is the highest when the government subsidies are according to the production volume of low-carbon products. Total emission reduction and supply members’ profit have a positive relationship with the subsidy coefficient and the sensitivity of consumers toward price difference and have a negative relationship with the R&D cost coefficient.

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Can Decentralization Drive Green Innovation? A Game Theoretical Analysis of Manufacturer Encroachment Selection with Consumer Green Awareness

Cited by 5 publications

References 46 publications

Dynamic Awareness and Strategic Adaptation in Cybersecurity: A Game-Theory Approach

Dynamic Awareness and Strategic Adaptation in Cybersecurity: A Game-Theory Approach

The Impact of CSR Implement Modes on Sustainable Supply Chain Pricing and Green Decision Making

Emission Reduction Strategies of a Low-Carbon Supply Chain Considering Product Substitution and Government Subsidy

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