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Green or non‐green product: A game‐theoretic framework to make optimal decision in a two‐level supply chain

Author

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  • Gayapada Santra
  • Tarun Maiti
  • Bibhas Chandra Giri

Abstract

This paper aims to discuss the decisions made by the retailer and manufacturer in a supply chain about pricing, green level, and quality of a product. The centralized model and the manufacturer‐led Stackelberg gaming model are developed for a conventional product and its environmentally friendly version. The two green models are subsequently compared with two non‐green models. Finally, a comprehensive variation of the model is considered, accounting for both green and non‐green products. The green‐only supply chain generates higher profit than the one that uses non‐green products. A revenue‐sharing contract is also employed to coordinate the supply chain.

Suggested Citation

  • Gayapada Santra & Tarun Maiti & Bibhas Chandra Giri, 2024. "Green or non‐green product: A game‐theoretic framework to make optimal decision in a two‐level supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(8), pages 5825-5845, December.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:8:p:5825-5845
    DOI: 10.1002/mde.4335
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