Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

Bengang Gong, Xuan Xia and Jinshi Cheng
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Bengang Gong: School of Management Engineering, Anhui Polytechnic University, No.8, Beijing Middle Rd., Jiujiang Dist., Wuhu 241000, China
Xuan Xia: School of Management Engineering, Anhui Polytechnic University, No.8, Beijing Middle Rd., Jiujiang Dist., Wuhu 241000, China
Jinshi Cheng: School of Management Engineering, Anhui Polytechnic University, No.8, Beijing Middle Rd., Jiujiang Dist., Wuhu 241000, China

Sustainability, 2020, vol. 12, issue 4, 1-14

Abstract: Given consumers’ willingness to pay different prices for new energy vehicles (NEVs) and traditional vehicles, we construct a utility model of ordinary and green consumers. We establish pricing game models for centralized and decentralized decisions in an NEV’s supply chain in order to study the impact of changes in consumers’ low carbon preference heterogeneity on supply chain pricing and member profit. The results show that consumers’ low carbon preferences and the ratio of green consumers increases with the ex-factory and selling prices of NEVs. An increase in the percentage of green consumers under centralized decision-making will reduce the total profit of the supply chain. Manufacturers’ profits under decentralized decision-making are greater than the dealers’ profits, and the sum of the two members’ profits under decentralized decision-making is less than the total profit of the supply chain under centralized decision-making. We design a revenue-sharing contract to eliminate the double marginal effect.

Keywords: low carbon preference heterogeneity; new energy vehicle; price decision; coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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