Innovation effort strategy of green supply chain considering government subsidies
To explore the optimal decision-making for green supply chain innovation efforts under different govern-ment subsidy scenarios,a green supply chain that dominated by manufacturer and composed of supplier and retailer was constructed,and its innovation effort decision strategies that the supplier and manufacturer made green innova-tion effort decisions and the retailer priced products were discussed.By analyzing three cases of government subsi-dies to the supplier,manufacturer and consumers,the profit function models of green supply chain members were constructed respectively.The optimal decisions and profits of each member under different subsidies were found through using game theory and reverse induction method.The impact of the total amount of government subsidies and the sensitivity coefficient of the green level of products on the green supply chain was further discussed.The re-search showed that when the government subsidized the supplier and manufacturer respectively,it was the most fa-vorable to improve their own green innovation efforts;when the government subsidized the consumers,the supplier and manufacturer could make more profits,and the retailer's profit was the highest when the government subsidized the manufacturer.
government subsidiesgreen supply chaingreen innovation effortsStackelberg model
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