Coordination of Risk-Averse Behaviors in a Green Supply Chain-to-Chain Competition

This research investigates the coordination of risk-averse behaviors among members in green supply chain-to-chain competition. We establish models encompassing member rationality, manufacturer risk aversion, cost-sharing contracts, and revenue-sharing contracts, providing the optimal equilibrium results for each scenario. This paper compares the effectiveness of cost-sharing versus revenue-sharing contracts, finding that risk-averse behavior diminishes profits, with total profits falling below those achieved under member rationality. Both contract types can facilitate coordination, but the revenue-sharing contract proves more effective. Under the revenue-sharing contract, wholesale and retail prices decrease, product greenness enhances, and profits for manufacturers, retailers, and the entire supply chain increase.