IDEAS home Printed from https://ideas.repec.org/a/eee/chsofr/v201y2025ip3s0960077925013025.html

Optimal pricing and complex analysis for green e-commerce platform supply chains

Author

Listed:
  • Tao, Jiayi
  • Jiang, Wei
  • Chao, Angela C.
  • Zhou, Qin

Abstract

A computational dynamic game framework is proposed to analyze the nonlinear interplay between pricing strategies and green investments in dual-channel e-commerce supply chains (EPSCs). By integrating static equilibrium analysis with nonlinear system dynamics, three major contributions are established. First, through a static game model, key thresholds for switching between decentralized and centralized decision-making mechanisms are identified. Centralized decision-making optimizes supply chain profitability under high green investment costs, as it internalizes cross-channel externalities. However, the decentralized mechanism becomes more advantageous under low green investment costs with minimal commission rates, reducing double marginalization losses. Second, employing bifurcation diagrams and Lyapunov exponent analysis, the relationship between adjustment speeds and system stability is revealed. Decentralized systems exhibit wider stability regions than centralized ones due to manufacturers' first-mover advantage. Beyond critical thresholds, chaotic states emerge, disrupting profit predictability. Third, an adaptive control mechanism is proposed to stabilize chaotic pricing oscillations. These findings equip platforms with computational tools to dynamically calibrate pricing-green investment trade-offs, while policymakers can leverage cost thresholds to design green subsidy schemes. The framework bridges game theory and nonlinear dynamics, offering a paradigm for sustainable e-commerce operations under bounded rationality.

Suggested Citation

  • Tao, Jiayi & Jiang, Wei & Chao, Angela C. & Zhou, Qin, 2025. "Optimal pricing and complex analysis for green e-commerce platform supply chains," Chaos, Solitons & Fractals, Elsevier, vol. 201(P3).
  • Handle: RePEc:eee:chsofr:v:201:y:2025:i:p3:s0960077925013025
    DOI: 10.1016/j.chaos.2025.117289
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960077925013025
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.chaos.2025.117289?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yinliang (Ricky) Tan & Janice E. Carrillo, 2017. "Strategic Analysis of the Agency Model for Digital Goods," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 724-741, April.
    2. Jing Wang & Yingchen Yan & Huibin Du & Ruiqing Zhao, 2020. "The optimal sales format for green products considering downstream investment," International Journal of Production Research, Taylor & Francis Journals, vol. 58(4), pages 1107-1126, February.
    3. Weon Sang Yoo & Eunkyu Lee, 2011. "Internet Channel Entry: A Strategic Analysis of Mixed Channel Structures," Marketing Science, INFORMS, vol. 30(1), pages 29-41, 01-02.
    4. Xi, Xuan & Zhang, Jixiang, 2020. "Complexity analysis of a decision-making game concerning governments and heterogeneous agricultural enterprises with bounded rationality," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    5. Lin Tian & Asoo J. Vakharia & Yinliang (Ricky) Tan & Yifan Xu, 2018. "Marketplace, Reseller, or Hybrid: Strategic Analysis of an Emerging E‐Commerce Model," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1595-1610, August.
    6. Liu, Yang & Lu, Jizhou & Yan, Nina, 2024. "Agency or reselling? Supplier’s online channel strategies with platform financing," European Journal of Operational Research, Elsevier, vol. 318(3), pages 1014-1027.
    7. Yuyan Wang & Runjie Fan & Liang Shen & Mingzhou Jin, 2020. "Decisions and coordination of green e-commerce supply chain considering green manufacturer's fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 58(24), pages 7471-7489, December.
    8. Xianjun Geng & Yinliang (Ricky) Tan & Lai Wei, 2018. "How Add†on Pricing Interacts with Distribution Contracts," Production and Operations Management, Production and Operations Management Society, vol. 27(4), pages 605-623, April.
    9. Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    10. Gérard P. Cachon, 2014. "Retail Store Density and the Cost of Greenhouse Gas Emissions," Management Science, INFORMS, vol. 60(8), pages 1907-1925, August.
    11. Yu Xia & Rongrong Shang & Mingxia Wei & Zhenke Wei, 2024. "Optimal pricing and financing decision of dual-channel green supply chain considering product differentiation and blockchain," Annals of Operations Research, Springer, vol. 338(2), pages 1317-1358, July.
    12. Liu, He & Xu, Tianting & Jing, Shuai & Liu, Zhidong & Wang, Shouyang, 2023. "The interplay between logistics strategy and platform’s channel structure design in B2C platform market," European Journal of Operational Research, Elsevier, vol. 310(2), pages 812-833.
    13. Mao, Zhaofang & Yuan, Ruiying & Shen, Zuo-Jun Max, 2025. "Strategic interactions between manufacturer channel choice and platform entry in a dual-market system," International Journal of Production Economics, Elsevier, vol. 279(C).
    14. Zhang, Zhe & Song, Huaming & Shi, Victor & Yang, Shilei, 2021. "Quality differentiation in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1000-1013.
    15. Marco Fasan & Elise Soerger Zaro & Claudio Soerger Zaro & Barbara Porco & Riccardo Tiscini, 2021. "An empirical analysis: Did green supply chain management alleviate the effects of COVID‐19?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2702-2712, July.
    16. Xi, Xuan & Zhang, Yulin, 2023. "The interplay between marketplace channel addition and pricing strategy in an e-commerce supply chain," International Journal of Production Economics, Elsevier, vol. 258(C).
    17. Bo Yan & Zhuo Chen & Xinni Wang & Zijie Jin, 2020. "Influence of logistic service level on multichannel decision of a two-echelon supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3304-3329, June.
    18. Zhu, Qinghua & Sarkis, Joseph & Cordeiro, James J. & Lai, Kee-Hung, 2008. "Firm-level correlates of emergent green supply chain management practices in the Chinese context," Omega, Elsevier, vol. 36(4), pages 577-591, August.
    19. Chen, Jianxin & Hou, Rui & Xiao, Lu & Zhang, Tonghua & Zhou, Yongwu, 2023. "Dynamic corporate social responsibility adjustment strategies of a closed-loop supply chain with fairness concerns and supply chain financing," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    20. Yingmiao Qian & Xian-An Yu & Malin Song & Zhiyang Shen, 2023. "Complexity analysis and control of game behavior of subjects in green building materials supply chain considering technology subsidies," Post-Print hal-03974946, HAL.
    21. Dong, Ciwei & Huang, Qianzhi & Pan, Yuqing & Ng, Chi To & Liu, Renjun, 2023. "Logistics outsourcing: Effects of greenwashing and blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    22. Khorshidvand, Behrooz & Guitouni, Adel & Govindan, Kannan & Soleimani, Hamed & Talebi, Leila & Sibdari, Soheil, 2025. "Optimizing pricing for sustainable government-subsidized omnichannel closed-loop supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    23. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    24. Mengdi Zhang & Yufang Fu & Zhiheng Zhao & Saurabh Pratap & George Q. Huang, 2019. "Game theoretic analysis of horizontal carrier coordination with revenue sharing in E-commerce logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(5), pages 1524-1551, March.
    25. Rong Ma & Tianjian Yang, 2024. "Manufacturer's channel strategy in live streaming E‐commerce supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2087-2107, June.
    26. Binshuo Bao & Junhai Ma & Mark Goh, 2020. "Short- and long-term repeated game behaviours of two parallel supply chains based on government subsidy in the vehicle market," International Journal of Production Research, Taylor & Francis Journals, vol. 58(24), pages 7507-7530, December.
    27. Albert Y. Ha & Shilu Tong & Yunjie Wang, 2022. "Channel Structures of Online Retail Platforms," Manufacturing & Service Operations Management, INFORMS, vol. 24(3), pages 1547-1561, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Haoruo & Ni, Yaodong & Xiao, Yongbo, 2025. "Information sharing across competing platforms with varying information capabilities," European Journal of Operational Research, Elsevier, vol. 323(1), pages 125-138.
    2. Zhu, Chen & Zaccour, Georges, 2025. "The interplay between charitable donation strategies and sales mode selection in the platform," European Journal of Operational Research, Elsevier, vol. 324(2), pages 506-521.
    3. Li, Gang & Zheng, Zhijun & Cheng, T.C.E. & Wang, Wei & Wu, Feng, 2025. "Agency selling or reselling: The impact of logistics service on selling mode choice," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 193(C).
    4. Xu, Xiaoping & Zhang, Mian & He, Ping, 2020. "Coordination of a supply chain with online platform considering delivery time decision," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    5. Tan, Yinliang (Ricky) & Yu, Chuanbin & Liu, Yang & Zheng, Quan, 2024. "Agency models in online platforms: A review of recent developments and future prospects," European Journal of Operational Research, Elsevier, vol. 319(3), pages 679-695.
    6. Li, Hui & Kannan, Devika & Xu, Qi, 2025. "Online operations in a multichannel supply chain under service cost difference: The adoption of blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 199(C).
    7. Gong, Canran & Ignatius, Joshua & Song, Huaming & Chai, Junwu & Day, Steven James, 2024. "The Impact of Platform’s Information Sharing on Manufacturer Encroachment and Selling Format Decision," European Journal of Operational Research, Elsevier, vol. 317(1), pages 141-155.
    8. Zhang, Xinxin & Zhang, Xiuyi & Huang, Junran, 2025. "Socially responsible e-commerce supply chains: Sales mode preference and store brand introduction," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 193(C).
    9. Wang, Lisha & Chen, Jing & Song, Huaming, 2021. "Marketplace or reseller? Platform strategy in the presence of customer returns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    10. Hu, Shu & Fu, Ke, 2025. "Equilibrium analysis of the seller’s fulfillment channels and sales channels," European Journal of Operational Research, Elsevier, vol. 320(3), pages 544-558.
    11. Wang, Chenyu & Sun, Jingchun & Shi, Siyu & Cheng, T.C. Edwin, 2025. "Third-party sellers’ selling formats and advertising competition on e-commerce platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    12. He, Shulin & Zhang, Mengdi & Wang, Shuaian & Huang, George Q., 2025. "Channel structures and subscription strategies for AI-driven logistics data products," European Journal of Operational Research, Elsevier, vol. 326(3), pages 597-614.
    13. Mao, Zhaofang & Yuan, Ruiying & Shen, Zuo-Jun Max, 2025. "Strategic interactions between manufacturer channel choice and platform entry in a dual-market system," International Journal of Production Economics, Elsevier, vol. 279(C).
    14. Wu, Jianghua & Yao, Junzhu & Wang, Yuqian, 2025. "Platform's role in green vs. non-green product competition: Blockchain transparency and selling contract selection," International Journal of Production Economics, Elsevier, vol. 288(C).
    15. Yu, Liying & Xu, Hui & Zhang, Ziyuan, 2025. "Dynamic decision-making of the e-commerce supply chain considering greenwashing and sales format," Socio-Economic Planning Sciences, Elsevier, vol. 98(C).
    16. Shengliang Zong & Longbing Zhang & Ruoxi Lei, 2025. "Product line strategy for green and non-green products in hybrid platform retailing," Annals of Operations Research, Springer, vol. 346(3), pages 2349-2385, March.
    17. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    18. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    19. Fang, Chang & Chi, Mingxiang & Fan, Shuyi & Choi, Tsan-Ming, 2024. "Who should invest in blockchain technology under different pricing models in supply chains?," European Journal of Operational Research, Elsevier, vol. 319(3), pages 777-792.
    20. Feng, Yixuan & Tan, Yinliang (Ricky) & Duan, Yongrui & Bai, Yu, 2020. "Strategies analysis of luxury fashion rental platform in sharing economy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chsofr:v:201:y:2025:i:p3:s0960077925013025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thayer, Thomas R. (email available below). General contact details of provider: https://www.journals.elsevier.com/chaos-solitons-and-fractals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.