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Pricing Policies of a Dual-Channel Supply Chain Considering Channel Environmental Sustainability

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  • Shan Chen

    (School of Mechanical Engineering, Chongqing University, Chongqing, 400030, China)

  • Xu Wang

    (School of Mechanical Engineering, Chongqing University, Chongqing, 400030, China)

  • Yingbo Wu

    (School of Software Engineering, Chongqing University, Chongqing, 400030, China)

  • Fuli Zhou

    (School of Mechanical Engineering, Chongqing University, Chongqing, 400030, China)

Abstract

This paper examines the dual-channel supply chain in which the differentiation of the environmental sustainability of channels is considered. We analyze the influences of the level of environmental sustainability of channels on the pricing policies for the supply chain members in both centralized and decentralized models using the Stackelberg game model under inconsistent price policy. We obtain the optimal level of environmental sustainability of channels and pricing decisions for the players in the centralized and decentralized dual-channel supply chains. Results show that the influence mechanisms of the level of environmental sustainability of channels on the pricing decisions are different in the centralized and decentralized models. Furthermore, numerical analysis has been conducted to investigate the effects of the cross-environmental-sustainability sensitivity factor and the initial proportion of consumers who prefer the retail channel on the level of environmental sustainability of channels, pricing policies and players’ profits.

Suggested Citation

  • Shan Chen & Xu Wang & Yingbo Wu & Fuli Zhou, 2017. "Pricing Policies of a Dual-Channel Supply Chain Considering Channel Environmental Sustainability," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:382-:d:92193
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    References listed on IDEAS

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    Cited by:

    1. Gan Wan & Gang Kou & Tie Li & Feng Xiao & Yang Chen, 2020. "Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    2. Yongzhao Wang & Xiaojie Sun, 2019. "Dynamic vs. Static Wholesale Pricing Strategies in a Dual-Channel Green Supply Chain," Complexity, Hindawi, vol. 2019, pages 1-14, November.
    3. Animesh Mondal & Dipak Kumar Jana & Ranjan Kumar Jana, 2022. "Competition of Forward and Reverse Supply Chain for Selling Two Substitutable Products: Novel Game Theory Approach," SN Operations Research Forum, Springer, vol. 3(4), pages 1-34, December.
    4. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    5. Shan Chen & Xu Wang & Lin Ni & Yingbo Wu, 2017. "Pricing Policies in Green Supply Chains with Vertical and Horizontal Competition," Sustainability, MDPI, vol. 9(12), pages 1-23, December.
    6. Syed Asif Raza, 2020. "Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization," Sustainability, MDPI, vol. 12(22), pages 1-42, November.

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