The Effect of Consumer Sentiment on Manufacturers’ Green Technology Innovation: A RDEU Evolutionary Game Model

Hongbo Guo, Mengtong Lu () and Lili Ding
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Hongbo Guo: College of Economics and Management, Shandong University of Science and Technology, Qingdao 266000, China
Mengtong Lu: School of Economics, Ocean University of China, Qingdao 266100, China
Lili Ding: School of Economics, Ocean University of China, Qingdao 266100, China

Sustainability, 2022, vol. 15, issue 1, 1-18

Abstract: In the information era, the fluctuation of consumer sentiments plays a key role in the green technology innovation of manufacturers. This paper introduces RDEU theory to the evolutionary game model to analyze the existence of equilibrium under different sentiment states. Then, the model is numerically simulated to study the influence of sentiments on the participants’ strategies. The results indicate that under different sentiment states green technology innovation and green purchasing behavior present different evolutionary trajectories. The main conclusions are as follows: (1) When both parties have no sentiments, there is a stable equilibrium point, suggesting customers are willing to purchase green products and manufacturers choose green technology innovation strategies. (2) When both parties have sentiments, the rising consumer boycott sentiment will hinder optimistic manufacturers from choosing green technology innovation strategies. Furthermore, the rising support sentiment of the consumer promotes optimistic manufacturers’ green technology innovations, and the more manufacturers deviate from the rational state, the more likely they are to maintain the current production mode. (3) When only one party has a sentiment, the manufacturer’s rationality plays a more important role in promoting green technology innovation than the consumer’s rationality. Based on the above conclusions, this paper proposes some sentiment guidance strategies that are conducive to green production and consumption. This study provides a new perspective and theoretical guidance for studying the behavior of green supply chain members to promote the development of green economy circulation.

Keywords: consumer sentiments; green technology innovation; rank-dependent expected utility (RDEU) theory; evolutionary game (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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