scholarly journals Research on the Dynamics Game Model in a Green Supply Chain: Government Subsidy Strategies under the Retailer’s Selling Effort Level

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-15 ◽  
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Dynamic Game ◽  
Retail Price ◽  
Green Supply Chain ◽  
Government Subsidy ◽  
Principal Agent Theory ◽  
Effort Level ◽  
The Impact ◽  
Selling Effort

Based on dynamic game theory and the principal-agent theory, this paper examined different government subsidy strategies in green supply chain management. Assuming that the retailer’s level of selling effort involved asymmetric information, this study analyzed the impact of different government subsidy strategies on the wholesale price, the product greenness level, retail price, the level of selling effort, the manufacturer’s profit, and the retailer’s profit. The results showed that (1) the government’s subsidy strategy can effectively not only improve the product greenness level but also increase the profits of an enterprise in a green supply chain, which helps the retailer to enhance their selling effort; (2) regardless of whether the retailer’s level of selling effort was high or low, as the government’s subsidy coefficient increased, the wholesale price continued to decrease, and the product greenness level and retailer’s selling effort level also increased.

scholarly journals Optimal Decisions of a Green Supply Chain under the Joint Action of Fairness Preference and Subsidy to the Manufacturer

2020 ◽  
Vol 2020 ◽  
pp. 1-18 ◽  
Author(s):  
Zi-yuan Zhang ◽  
Duan-xiang Fu ◽  
Qing Zhou
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Green Supply Chain ◽  
Government Subsidy ◽  
Market Expansion ◽  
Optimal Decisions ◽  
Preference Behavior ◽  
The Government ◽  
The Impact

Government subsidy promotes the development of green supply chain, and the influence of decision-makers’ behavioral preferences becomes increasingly prominent in green supply chain management. In order to further enrich the research content of green supply chain, we first use Stackelberg game theory to construct game models by taking the product green degree, wholesale price and retail price as the decision variables, then we work out the equilibrium strategies of the manufacturer and the retailer under four decision scenarios, and reveal the impact differences between the two parties’ fairness preference behaviors. Our research mainly has the following findings: Firstly, the government subsidy to the manufacturer can benefit these two parties and can have certain impact on the optimal decisions only by working with the green product market expansion efficiency. Secondly, these two parties’ fairness preference behaviors can cause serious damage to the other party’s profit and the overall profit of green supply chain, and increase the rate of their own profit in the overall profit of green supply chain, but the difference is that the retailer’s fairness preference behavior can cause a greater decline in product green degree and wholesale price, and when certain conditions are met, its own profit may rise compared to its fairness neutral, while the manufacturer’s fairness preference behavior can cause a greater damage to the overall profit of green supply chainand make its own profit always be lower than its fairness neutral. Thirdly, the government subsidy to the manufacturer and the fairness preference behaviors of both parties can cause a stack effect on the optimal solutions, which means that the subsidy government provides for the manufacturer can aggravate the negative influence caused by these two parties’ fairness preference behaviors.

Decisions of Green Supply Chain under Fairness Concerns and Different Power Structures

2018 ◽  
Vol 14 (4) ◽  
pp. 28-53 ◽  
Author(s):  
Guangdong Liu ◽  
Tianjian Yang ◽  
Yao Wei ◽  
Xuemei Zhang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Nash Equilibrium ◽  
Wholesale Price ◽  
Dynamic Game ◽  
Retail Price ◽  
Green Supply Chain ◽  
Power Structures ◽  
Fairness Concerns ◽  
Dynamic Game Model

This article constructs a two-stage dynamic game model for green manufacturers, retailers, and consumers to address the issue that fairness preference in manufacturing can impact supply chain decision-making. This is done by discussing decision-making under the three power structures of green-manufacturer-dominated, retailer-dominated, and the Nash-equilibrium, and compares the balanced decision under the three power structures. The results show that in the manufacturer-dominated and Nash equilibrium games, product greenness, retailer profits, manufacturer profits, total supply chain profits, and a manufacturer's utility all decrease as the fairness preference increases, whereas the retail price and wholesale price are just the opposite of each other. In the retailer-dominated game, the retail price, product greenness, and total supply chain profits are not impacted by the fairness preference. The wholesale price, manufacturer's profits, and manufacturer's utility increases as the fairness preference increases, whereas the retailer profits decrease.

The Impact of Dual-Fairness Concerns Under Different Power

2019 ◽  
Vol 15 (3) ◽  
pp. 1-26
Author(s):  
Tianjian Yang ◽  
Guangdong Liu ◽  
Yao Wei ◽  
Xuemei Zhang ◽  
Xinglin Dong
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Equilibrium Structure ◽  
Retail Price ◽  
Green Supply Chain ◽  
Power Structures ◽  
Optimal Decisions ◽  
Fairness Concerns ◽  
Total Profit ◽  
The Impact

By analyzing the impact of different fairness concerns on a green supply chain, this study determines the optimal decisions under different power structures and conducts a comparative analysis of them. The findings of this study are summarized as follows: 1) under the manufacturer-dominated structure, retail price, wholesale price, product greenness, the manufacturer's profit, the total profit of the supply chain, the manufacturer's utility, and the retailer's utility are all negatively correlated with fairness concerns, but positively correlated with the retailer's profit; 2) under the retailer-dominated structure, fairness concerns have no impact on retail price, product greenness, or the total profit of the supply chain, are positively correlated with wholesale price and the manufacturer's profit and utility, and are negatively correlated with the retailer's profit and utility; 3) under the Nash equilibrium structure, fairness concerns have no impact on the green supply chain.

scholarly journals Green Supply Chain Pricing and Performance: a Fairness Preferences and Green Marketing Perspective

2021 ◽  
Author(s):  
Hong Huo ◽  
Haiyan Zhong ◽  
Xiaoli Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
Green Marketing ◽  
Green Supply Chain ◽  
Optimal Decision ◽  
Market Demand ◽  
Efficient Operation ◽  
And Performance ◽  
The Impact

This study investigates optimal decisions in a green supply chain consisting of a manufacturer and a leading retailer considering the green marketing and fairness preferences of member firms. Four Stackelberg game decision models are constructed in which the manufacturer and the re-tailer engage in green marketing separately when the manufacturer has no and has fairness preferences. The impacts of fairness preferences and green marketing on the optimal decision in the green supply chain are comparatively analyzed. The study finds that member firms perform green marketing regardless of the presence or absence of fairness preferences and that such be-havior increases the wholesale price, retail price, and market demand of low-carbon products as well as the profits of member firms and the supply chain. A more interesting finding is that the profit growth of member firms and the supply chain due to the manufacturer’s green marketing is more pronounced than that due to the retailer’s green marketing. When the retailer and the manufacturer engage in conduct green marketing, the manufacturer's fairness preferences have different effects on the wholesale price, retail price, market demand, level of green marketing efforts, member enterprises and profits of supply chain. Therefore, firms should consider the impact of green marketing and fairness preferences to make pricing and performance decisions, so as to achieve efficient operation of the whole supply chain and avoid double marginal effects. Finally, the above conclusions are verified through numerical simulation, providing a reference for the decision-making of member firms in the green supply chain.

scholarly journals Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3154
Author(s):  
Wentao Yi ◽  
Zhongwei Feng ◽  
Chunqiao Tan ◽  
Yuzhong Yang
Keyword(s):  
Supply Chain ◽  
Loss Aversion ◽  
Reference Point ◽  
Wholesale Price ◽  
Optimal Strategies ◽  
Retail Price ◽  
Nash Bargaining ◽  
Green Supply Chain ◽  
Bargaining Solution ◽  
Efficiency Coefficient

This paper investigates a two-echelon green supply chain (GSC) with a single loss-averse manufacturer and a single loss-averse retailer. Since the Nash bargaining solution exactly characterizes endogenous power and the contribution of the GSC members, it is introduced as the loss-averse reference point for the GSC members. Based on this, a decision model of the two-echelon GSC with loss aversion is formulated. The optimal strategies of price and product green degree are derived in four scenarios: (a) the centralized decision scenario with rational GSC members, namely the CD scenario; (b) the decentralized decision scenario with rational GSC members, namely the DD scenario; (c) the decentralized decision scenario with the GSC members loss-averse, where the manufacturer’s share is below its own loss-averse reference point, namely the DD(∆m ≥ πm) scenario; (d) the decentralized decision scenario with the GSC members loss-averse, where the retailer’s share is below its own loss-averse reference point, namely the DD(∆r ≥ πr) scenario. Then, a comparative analysis of the optimal strategies and profits in these four scenarios is conducted, and the impacts of loss aversion and green efficiency coefficient of products (GECP) on the GSC are also performed. The results show that (i) GECP has a critical influence on the retail price and the wholesale price; (ii) the GSC with loss aversion provide green products with the lowest green degree; (iii) the retail price, the wholesale price and product green degree are decreasing monotonically with the loss aversion level of the GSC member without incurring loss; (iv) furthermore, the effect of the loss aversion level of the GSC member with incurring loss on the optimal strategies is related to GECP and the gap between the GSC members’ loss aversion levels.

scholarly journals The Influence of Buyer Power on Supply Chain Pricing with Downstream Competition

2019 ◽  
Vol 11 (10) ◽  
pp. 2924
Author(s):  
Qiu Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Retail Price ◽  
Retail Market ◽  
Pricing Decisions ◽  
Buyer Power ◽  
Downstream Competition ◽  
The Impact ◽  
Vertical Market

This paper aims to investigate the impact of buyer power on the wholesale price and retail price of, in the case, downstream competition. Based on a summary of the competitive characteristics of China’s retail market, a model of a vertical market was constructed to examine the influence of buyer power on the pricing decisions of manufacturers and retailers, and to analyze the mechanism of price decisions. The results showed that the buyer power of national retailers reduced the wholesale price, but the impact on local retailers remained uncertain. Although increasing buyer power initially increased the local retailer’s wholesale price and caused the ‘waterbed effect’, we found that this effect reverted when the buyer power reached a point at which the ‘anti-waterbed effect’ appeared. The opposite was true of the retail price. However, buyer power reduced the average retail price, and consumer welfare improved.

scholarly journals Green Supply Chain Decisions Considering Consumers’ Low-Carbon Awareness under Different Government Subsidies

2020 ◽  
Vol 12 (6) ◽  
pp. 2281 ◽  
Author(s):  
Chang Su ◽  
Xiaojing Liu ◽  
Wenyi Du
Keyword(s):  
Supply Chain ◽  
Carbon Emission ◽  
Wholesale Price ◽  
Retail Price ◽  
Green Supply Chain ◽  
Power Structures ◽  
Green Products ◽  
Government Subsidies ◽  
Emission Level ◽  
The Government

This study examined how to arrange the generation and pricing of supply chain members in the case of consumer green preference with different government subsidies. The green supply chain comprises a manufacturer and a retailer; the government subsidizes manufacturers who produce green products and consumers who buy green products. The study built a green supply chain pricing decision model with different forms of subsidy under various power structures. By backward induction and sensitivity analysis, this study analyzed optimal strategies of green supply chain under various modes, and we discuss how the government subsidy coefficient affects the optimal decision of a green supply chain. The results show that, firstly, whether the government subsidizes the manufacturers or the consumers, the wholesale price offered by the manufacturer is directly proportional to the subsidy coefficient under the two power structures. Secondly, when the government subsidizes the manufacturer, the carbon-emission level and the retail price are inversely proportional to the subsidy coefficient under the manufacturer leader; the carbon-emission level and the retail price are all directly proportional to the subsidy coefficient under the retailer leader. Finally, when the government subsidizes the consumers, the carbon-emission level and the retail price are directly proportional to the subsidy coefficient under the two power structures.

scholarly journals How Different Government Subsidy Objects Impact on Green Supply Chain Decision considering Consumer Group Complexity

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Qingfeng Meng ◽  
Mengwan Li ◽  
Zhen Li ◽  
Jing Zhu
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Green Supply Chain ◽  
Green Product ◽  
Green Products ◽  
Consumer Group ◽  
Environmental Preferences ◽  
Government Subsidies ◽  
The Government ◽  
The Impact

This paper fully considers the complexity characteristics of the consumer group, such as the heterogeneity of consumer environmental preferences and consumption levels and constructs a two-stage price decision model of green supply chain composed of the manufacturer and retailers. Under the four different scenarios, no government subsidies, government subsidies are given to the manufacturer, government subsidies are given to the green product retailer, and government subsidies are given to green product consumers, the impact of government subsidies on green supply chain member price decisions is analyzed, and the validity of the model is verified by an example. The results show that compared with the no government subsidies, government subsidies to the manufacturer will reduce the wholesale and sales prices of green products, and subsidies to the green product retailer will lead to higher wholesale prices and lower sales prices of green products, and subsidies to green product consumers will increase the wholesale and sales prices of green products. No matter which object is subsidized by the government, the wholesale price of general products will not change and the sales price will decrease. Government subsidies will facilitate the sales of green products, thereby expanding the market share of green products.

scholarly journals Green Supply Chain Management with Cooperative Promotion

2021 ◽  
Vol 13 (6) ◽  
pp. 3204
Author(s):  
Ke Yan ◽  
Guowei Hua ◽  
Edwin Tai Chiu Cheng
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Wholesale Price ◽  
Retail Price ◽  
Channel Structure ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
On Demand ◽  
Green Investment

Green supply chain management has received increasing attention as consumers have become more environmentally conscious. Manufacturers are making green investments to meet consumers’ demands, while retailers in different markets often engage in cooperative promotion to attract more consumers. This study develops game theoretic models for investigating cooperative promotion for two cross-market firms with different channel structures, i.e., decentralized and centralized. The manufacturer determines the wholesale price for the retailers and the green investment of a product, and the retailers determine the promotional effort and retail price. This study finds that whether the firms join in cooperative promotion mainly depends on the wholesale price, as well as the impacts of the price, green investment, and cooperative promotional activities on the demand. When the wholesale price is relatively low, the retail price of the decentralized green supply chain must be lower than that of the centralized green supply chain. On the contrary, the difference in the retail price between the two green supply chains varies with the impacts of green investment and cooperative promotional activities on demand. In addition, due to the influence of channel structure, the contribution to cooperative promotion of the centralized supply chain is more than that of the decentralized supply chain with the most given conditions. Moreover, as the impact of cooperative promotional activities on demand increases, the centralized green supply chain does not necessarily result in higher profits than the decentralized green supply chain.

scholarly journals Contract Manufacturer’s Encroachment Strategy considering Fairness Concern in Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-24
Author(s):  
Jing Shi
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
Reservation Price ◽  
Numerical Examples ◽  
Fairness Concerns ◽  
Private Brand ◽  
Fairness Concern ◽  
The Impact ◽  
Positive Effect

More and more contract manufacturers have started to establish their own brands besides providing manufacturing service for retailers who operate exclusive well-known brands. This paper studies the encroachment strategy of a contract manufacturer in a supply chain and the impact of fairness concern. Four scenarios are investigated by building game models: no fairness concern, the retailer’s fairness concern, the contract manufacturer’s fairness concern, and both members’ fairness concern. The results show that when there is no fairness concern, the contract manufacturer always has motivation to encroach. However, when there exists fairness concern, only when the reservation price is sufficiently high, the contract manufacturer will encroach. Fairness concern has certain strength to stop the contract manufacturer’s encroachment. When the reservation price is sufficiently low, the encroachment of the contract manufacturer benefits the retailer, or else it will harm the benefit of the retailer. The effect of fairness concern on profit margin and wholesale price decisions is opposite under different encroachment strategies. However, the fairness concern has no impact on the retail price of the private brand. Under encroachment strategy, contract manufacturer’s or both members’ fairness concerns have positive effect on the retailer’s profit in certain conditions. However, the fairness concern always decreases the contract manufacturer’s profit no matter what the form it is. Numerical examples show that it is best for the supply chain that both members have fairness concern under no encroachment. However, when the contract manufacturer has a private brand, it is best for the supply chain that no one has fairness concern when the advantageous inequity concern parameter is sufficiently low. When the advantageous inequity concern parameter is sufficiently high, it is best for the supply chain that both members have fairness concern.

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