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Platform-led green advertising: Promote the best or promote by performance

Author

Listed:
  • Du, Shaofu
  • Wang, Lei
  • Hu, Li
  • Zhu, Yangguang

Abstract

With the prevalence of platform economics and consumer green awareness, platform-led green advertising becomes an emerging issue in practice. We investigate this issue by simultaneously considering a product’s green performance and consumer’s green preference. Two strategies discussed systematically with Stackelberg models: Promote by Performance and Promote the Best. The results demonstrate the value of green advertising from both economic and environmental perspectives. The platform can make more profit using the Promote the Best strategy rather than the Promote by Performance strategy, although the former requires more investment. The related boundary and optimal decisions are identified and analyzed.

Suggested Citation

  • Du, Shaofu & Wang, Lei & Hu, Li & Zhu, Yangguang, 2019. "Platform-led green advertising: Promote the best or promote by performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 115-131.
    • Handle: RePEc:eee:transe:v:128:y:2019:i:c:p:115-131
    DOI: 10.1016/j.tre.2019.05.019
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