Product Pricing and Coordination in a Two-period Green Supply Chain with Reference Price Effect
This paper considers the reference price effect in a two-period supply chain composed of a green manufacturer and a retailer,and studies the pricing,green decisions and coordinationby constructing game models.Comparing the equilibrium results of centralization and decentralization,it is found that centralization is more conducive to the economic performance of the supply chain and the market expansion of green products than decentralization.However,the determination of the green level is not related to the decision structure or the existence of cooperation in the chain.This paper further achieves the com-plete coordination of the green supply chain through a two-part tariffcontract.In terms of pricing strategy,supply chain members tend to differential pricing before coordination.After the introduction of the coordination contract,the pricing strat-egy of the retailer remains unchanged,while the manufacturer shifts from differential pricing to consistent pricing.In addi-tion,this paper also explores the impact of reference price effect on supply chain,and points out that a high reference price sensitivity is beneficial to market demand and the economic benefit of the system.
green supply chaintwo periodsreference price effectgamepricingcoordination