Social-Welfare Aspects of Green Decision-Making in Channel Competition with Government Financial Intervention

抄録

In a two-echelon supply chain, a manufacturer produces a green product and sells it to two competing retailers—one physical store and one online shop. Herein, we consider two factors affecting the green level of a product: the green level produced by the manufacturer and the green-marketing effort of the two retailers. The government levies a tax or offers a subsidy on the final retail price depending on the green level of the product. Using the Stackelberg game, we investigated the factors of competition between the retailers, financial intervention from the government, and consumer surplus affecting the pricing of a green product and the green-marketing effort-level decisions by the supply chain members. The results indicated that consumer surplus is influenced by green decisions and government subsidies increase the profits of the two types of stores.