Study of the competition between low carbon products and ordinary products manufacturer based on government subsidies
Based on the consumers' willingness to buy,this paper establishes a two-stage game model.Based on this model,it compares two conditions,subsidies are given to low-carbon manufacturers and where the subsidies given to consumers.It analyzes the influence of government subsidies on the decision variables of low-carbon products manufacturers,ordinary products manufacturers and retailers.At the same time,this paper analyzes the changes of two products sales and profits for two types of manufacturers and retailers under different conditions.The results show that government subsidies benefit the development of low-carbon products manufacturers while subsidies to low-carbon products manufacturers are more effective than those to consumers.
government subsidieslow carbon productsconsumer willingnessgame model