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Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government

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  • Hafezalkotob, Ashkan

Abstract

Currently, governments that maintain sustainable objectives often adopt financial incentives and deterrents to orchestrate the outsourcing decisions of manufacturers. This work investigates the effect of government financial intervention on the competition and cooperation of two manufacturers. One manufacturer pursues an in-house production strategy, and the other outsources production to a foreign supplier. Regarding the financial, environmental and social objectives of the government and the leadership role of the government in the market, this problem is formulated as a multi-level, multi-objective decision making model. We found that specific boundaries for tariffs set by the government lead to a stable competitive or monopolistic market. A comprehensive analysis of the government policies reveals the possible outcomes of the policies regarding the sustainable objectives.

Suggested Citation

  • Hafezalkotob, Ashkan, 2017. "Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government," Applied Mathematics and Computation, Elsevier, vol. 292(C), pages 294-308.
    • Handle: RePEc:eee:apmaco:v:292:y:2017:i:c:p:294-308
    DOI: 10.1016/j.amc.2016.07.007
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    2. Wen Cheng & Qunqi Wu & Fei Ye & Qian Li, 2022. "The Impact of Government Interventions and Consumer Green Preferences on the Competition between Green and Nongreen Supply Chains," Sustainability, MDPI, vol. 14(10), pages 1-34, May.
    3. Saeid Rezaei & Reza Maihami, 2020. "Optimizing the sustainable decisions in a multi-echelon closed-loop supply chain of the manufacturing/remanufacturing products with a competitive environment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6445-6471, October.
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    5. Fan, Zhi-Ping & Cao, Yue & Huang, Chun-Yong & Li, Yongli, 2020. "Pricing strategies of domestic and imported electric vehicle manufacturers and the design of government subsidy and tariff policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).

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