Study On Strategy Selection Between Manufacturers And Retailers In Green Supply Chain Based On Game Theory

In recent years, with the improvement of public environmental consciousness, green supply chain is getting more and more attention from the whole society. Government, enterprise, customers are doing their best to promote GSC’s development in different ways. In this paper, we focus on the allocation of manufacturer’s green manufacturing cost and the choosing of retailer’s marketing strategy in green supply chain environment, under the condition of manufacturer’s green manufacturing base on government guidance and consumer’s green preferences.Firstly, a complete information static game model has been built between manufacturers and retailers using the index demand function with the introduction of "green value". Nash equilibrium in different conditions have been obtained and the influence of related parameters on the equilibrium has also been discussed. Then an evolutionary game has been adopted extensively to locate the optimal and the most stable point offering the best economic gains. Numerical analysis has been presented for further instruction.Through model analysis we can get the following main conclusions:(1)the manufacturer would not undertake too much green manufacturing costs and retailers would not invest too much green marketing costs as well.(2)Manufacturers should actively undertake green manufacturing cost, choose the retailers whose traditional marketing costs, profits, and green marketing costs are lower to cooperate in order to make the retailers do green marketing; Retailers should also actively adopt green marketing strategy, choose the manufacturers whose traditional and green manufacturing cost are lower to cooperate in order to make the manufacturers undertake the green manufacturing costs.(3)Manufacturers would undertake green manufacturing costs on the condition of higher price elasticity of demand of certain products; Retailers would do green marketing on the condition of higher marketing expenditure elasticity of demand. These conclusions also have important guiding significance for consumers’ cost-effective green products choosing and government’s green subsidies making.