Pricing Strategy and Governments Intervention for Green Supply Chain with Strategic Customer Behavior

Ma Changsong (), Li Tian (), Li Cong () and He Hua ()
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Ma Changsong: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu610031, China
Li Tian: Logistics Research Institute, Tian Fu College of Southwestern University of Finance and Economics, Chengdu, China
Li Cong: Logistics Research Institute, Tian Fu College of Southwestern University of Finance and Economics, Chengdu, China
He Hua: School of Transportation and Logistics, Southwest Jiaotong University, Chengdu, China

Journal of Systems Science and Information, 2014, vol. 2, issue 3, 206-216

Abstract: This paper researches the pricing strategy and government intervention mechanism for green supply chain in monopoly market, while considering strategic customer behavior. According to optimization theory, it establishes the target functions of retailer and strategic customers and investigates the interactions between retailer and strategic customers in accordance with Stackelberg’s game theory, so as to confirm the optimal discount level for green products. In addition, it discusses the regulatory effect of government intervention, including the guiding price and fiscal subsides, on the sales of green products. The research shows that the retailer can make the profit maximization by adjusting the discount level; the governments can regulate the sales of products by implementing the guiding price and fiscal subsides to the retailer.

Keywords: strategic customer behavior; governmental intervention; pricing strategy (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:jossai:v:2:y:2014:i:3:p:206-216:n:2

DOI: 10.1515/JSSI-2014-0206

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