Green Building Investment And Pricing Policy In The Construction Supply Chain With Bonus Incentive And Consumer Reference Price

With large number of greenhouse gas emissions,leading to global warming,many animals and plants are on the verge of extinction,affecting human life and health.An important economic pillar industry in China is the construction industry,which is also the high carbon emissions and high energy consumption.Therefore,the construction industry must respond to low-carbon environmental protection policies and concepts,increase investment in green building technology,and reduce building carbon emissions.In addition,consumers become more and more smart in purchasing products,and they usually have a reference price before making purchase decisions.To cope with the changing market demands,enterprises must adopt reasonable pricing strategies.This study introduces bonus incentive mechanism and consumer reference price into the construction supply chain.On the one hand,to encourage contractor we set up an bonus incentive mechanism before the construction period.On the other hand,to increase the profit of the construction supply chain,we consider consumer reference prices when pricing and adopt dynamic pricing strategies during the sales period.This paper establishes a static pricing model with bonus incentive mechanism,a static pricing model with reference prices,a static pricing model with bonus incentive mechanism and reference prices,and a dynamic pricing model with bonus incentive mechanism and reference prices successively.Study the green building investment and pricing strategies of the construction supply chain in different models through game theory,supply chain management theory and reverse induction methods.Then,compare the optimal decision and maximum profit under each model.At last,we analyzed the impact of the green energy saving coefficient and the memory parameter of the reference price effect on the optimal decision and maximum profit of the construction supply chain.The research in this paper shows that contractors will increase the green building grade,and the profits of developers and contractors will increase under the bonus incentive mechanism.The optimal pricing decreases and the developer’s optimal profit increases,after considering the reference price.Developer use dynamic pricing can obtain higher profits than static pricing in a long sales cycle,and which pricing strategy is adopted is closely related to the consumer’s initial reference price.We also find that high green energy-saving efficiency and green building investment efficiency are the key to improving the profitability of the building supply chain.Therefore,contractors can reduce costs by improving green building investment efficiency and green energy-saving coefficients.Developers can effectively increase their own profits by cooperating with a contractor with high green building investment efficiency.