{"title":"Green or non-green product: A game-theoretic framework to make optimal decision in a two-level supply chain","authors":"Gayapada Santra, Tarun Maiti, Bibhas Chandra Giri","doi":"10.1002/mde.4335","DOIUrl":null,"url":null,"abstract":"<p>This paper aims to discuss the decisions made by the retailer and manufacturer in a supply chain about pricing, green level, and quality of a product. The centralized model and the manufacturer-led Stackelberg gaming model are developed for a conventional product and its environmentally friendly version. The two green models are subsequently compared with two non-green models. Finally, a comprehensive variation of the model is considered, accounting for both green and non-green products. The green-only supply chain generates higher profit than the one that uses non-green products. A revenue-sharing contract is also employed to coordinate the supply chain.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"45 8","pages":"5825-5845"},"PeriodicalIF":2.5000,"publicationDate":"2024-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4335","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper aims to discuss the decisions made by the retailer and manufacturer in a supply chain about pricing, green level, and quality of a product. The centralized model and the manufacturer-led Stackelberg gaming model are developed for a conventional product and its environmentally friendly version. The two green models are subsequently compared with two non-green models. Finally, a comprehensive variation of the model is considered, accounting for both green and non-green products. The green-only supply chain generates higher profit than the one that uses non-green products. A revenue-sharing contract is also employed to coordinate the supply chain.
期刊介绍:
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.