Sales Incentive Contract Design Considering Consumers' Carbon Preference Under Asymmetric Information

In recent years,with the trend of global warming further intensified,how to reduce carbon emissions has become a hot topic in the international community.With the increasing of low carbon preference consumers that will not only change the market demand,also affect the company's emission reduction and commodity pricing decision,At the same time,in the circulation of low carbon commodities,manufacturers set price and hire the agents to sell low-carbon goods is a common phenomenon.In this process,marketing ability of agents is their private information,and its? efforts are difficult to be directly observed by the manufacturers.Therefore,how to identify agents? marketing ability,and motivate them to make their best efforts to achieve manufacturers? goals is an important issue to manufacturers.In this paper,we considered consumer have low carbon preference and agents? carbon marketing ability is private information,and researched how manufacturers through the commodity carbon reduction,pricing decision and the corresponding contract design to identify agents? ability and motivate agents.Specifically,the main contents and results of this paper as follows:First,this paper constructs a two stages supply chain that consists of a manufacturer and an agent,considering their principal sales behavior took place in a single period.We discussed manufacturer?s optimal production carbon reduction decision and pricing decision and gives the optimal sales incentive contract under centralized decision making model and decentralized decision-making models.We found manufacturer?s revenue,the unit emission reduction of production,production pricing is positively correlated with consumers? low carbon preference coefficient,consumers will be charged with manufacturer?s reduction costs.Agent?s orders are positive correlated with low carbon consumer preference coefficient also.Because of the information rents,high ability agents will make too much effort,and low ability agents will be lack of efforts.Manufacturer? unit emission reduction and production pricing strategy is higher in centralized decision making model,they can maximize revenue to use emissions reduction and pricing tactics.Further,we extended the single period models to the two period models that the two sides will continue principal sales behavior.We discussed manufacturer how to make optimal unit emission reduction and the optimal pricing strategy and we gave the corresponding long-term sales incentive contract in two period models.Under symmetry information,contract elements in two periods are same to single period,the two periods strategy is repetition of single period.We found manufacturer?s revenue,the unit emission reduction of production,production pricing is positively correlated with consumers? low carbon preference coefficient.This illustrates consumers? low carbon preference can promote carbon emissions reduction and the consumers will be charged with manufacturer?s reduction costs.But in the two periods model under asymmetric information,the two periods? decision is no longer single period?s repetition,manufacturers need to give long-term contracts.Production unit carbon emission reduction and commodity prices that manufacturer set up in two period models is lower than the single period models.In single period models,at the same time manufacturer need to increase the carbon emission reduction to increase market demand and need to raise commodity price to cover the cost of emission reduction.The twice of total orders that agents obtained in single period is lower than that of two period model,because the manufacturer can identify the ability of agents in a dynamic process,so they can through reduction,pricing,contract design makes the agent to make maximal effort.Consumers? low carbon preference coefficient is positively correlated with manufacturers? revenue,production unit carbon emission reduction,commodity prices and agent? orders.This still implicates consumers? low carbon preferences can promote carbon reduction and whole revenue of supply chain.