Research On Pricing Strategy In Three-level Green Supply Chain Under Government Subsidies

The three heavy pressures which come from environmental resources, government interference and consumer market make the enterprises have to implement the green supply chain. And under condition of increasing shortage of resources and the increasing stringent of government controls, the implementation of green supply chain can not only enable enterprises to raise economic benefits, but also improve enterprise’s green image, and then improve its competitiveness. The price strategy is an effective way to harmonious enterprises to implement the green supply chain. As we must consider the government incentive mechanism and friendly environment, the relations between the members are more complex, which makes to study the problem of pricing strategy of green supply chain is necessary. This paper is based on analysis of the green supply chain theory and the application of game theory in the green supply chain. The paper makes a deep research on the problem of three-level green supply chain pricing decision under government subsidies. This paper mainly launches the researches on the following three aspects:(1) Construction of the government revenue function. The construction of the government revenue function is based on the government intervention policy on the green supply chain, the document analysis, and the simplification of the complex government intervention in reality without changing the nature of the problem.(2) Establishment of the non-cooperative game model which is based on the government subsidy of the three-level green supply chain. This paper will put the consumer’s preference and the affect of green products on the environment into consideration, and establishes three kinds of non-cooperative game model based on government subsidies among green supply chain enterprises. They are stackelberg game model based on decentralized decision, stackelberg game model based on supplier and producer alliance, stackelberg game model based on producer and retailer alliance. Through the analysis of the three models, we get the best pricing strategies for each participant in each case.(3) Structure of the cooperate game model among the three members in green supply chain on the basis of the of government subsidies. With the government subsidies, the supplier, manufacturer and retailer compose the three-level green supply chain. In order to obtain the overall maximum, the members form a partnership and set a retail price of green products together. This paper makes a study on this issue, and we get the optimal retail price of green products. Furthermore, this paper will apply the way of interest distribution in supply chain into green supply chain and work out a profit distribution plan to make three parties are relatively satisfactory through negotiation.