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Automobile manufacturers’ strategic choice in applying green practices: joint application of evolutionary game theory and fuzzy rule-based approach

Author

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  • Samira Keivanpour
  • Daoud Ait-Kadi
  • Christian Mascle

Abstract

Satisfying the end-of-life vehicle (ELV) legislations is essential for business activities in some markets. However, with the lack of similar regulations for the treatment of ELV, automotive manufacturers follow different green practices. These practices can be a complex task such as an eco-design strategy or issuing a guideline or manual for the end-of-life phase of the product. Each of these practices also has different impacts on the other players in the market. Several factors contribute to manufacturers’ gain as a result of applying green practices. The uncertainties in these features and the absence of data availability raise the difficulty in the manufacturers’ profit estimation. This paper proposes a new approach to analysing automotive manufacturers’ strategic choice in applying ELV practices considering the competitive advantages of performing these practices and the interaction between players. A joint application of evolutionary game theory and fuzzy rule-based approach is proposed to analyse the strategic behaviour of automotive manufacturers. The proposed model provides a simulation environment for testing the interaction of the different market factors and players’ action. The experimental design highlights the validity of the model and its implications. The result reveals that when we have two populations of players including the market leader in recycling initiatives and market reader; the market elements such as ‘elasticity of demand to price’ and ‘loyalty of consumers to market leader’ play an essential role in determining the stable strategy of the game.

Suggested Citation

  • Samira Keivanpour & Daoud Ait-Kadi & Christian Mascle, 2017. "Automobile manufacturers’ strategic choice in applying green practices: joint application of evolutionary game theory and fuzzy rule-based approach," International Journal of Production Research, Taylor & Francis Journals, vol. 55(5), pages 1312-1335, March.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:5:p:1312-1335
    DOI: 10.1080/00207543.2016.1203077
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    References listed on IDEAS

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    1. Michael Kuhn, 2005. "The Greening of Markets," Books, Edward Elgar Publishing, number 3583.
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    Cited by:

    1. Kang, Bingyi & Chhipi-Shrestha, Gyan & Deng, Yong & Hewage, Kasun & Sadiq, Rehan, 2018. "Stable strategies analysis based on the utility of Z-number in the evolutionary games," Applied Mathematics and Computation, Elsevier, vol. 324(C), pages 202-217.
    2. S. Maryam Masoumi & Nima Kazemi & Salwa Hanim Abdul-Rashid, 2019. "Sustainable Supply Chain Management in the Automotive Industry: A Process-Oriented Review," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    3. Fatin Amrina A. Rashid & Hawa Hishamuddin & Nizaroyani Saibani & Mohd Radzi Abu Mansor & Zambri Harun, 2022. "A Review of Supply Chain Uncertainty Management in the End-of-Life Vehicle Industry," Sustainability, MDPI, vol. 14(19), pages 1-28, October.
    4. Fahimeh Aliakbari Nouri & Mohsen Shafiei Nikabadi & Laya Olfat, 2019. "The Role of Supply Chain Features in the Effectiveness of Sustainability Practices in the Service Supply Chain: Application of Fuzzy Rule-Based System," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 867-899, May.
    5. Ma, Haicheng & Lou, Gaoxiang & Fan, Tijun & Chan, Hing Kai & Chung, Sai Ho, 2021. "Conventional automotive supply chains under China's dual-credit policy: fuel economy, production and coordination," Energy Policy, Elsevier, vol. 151(C).

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