Abstract
In this paper, we study a platform-led Stackelberg differential game over an infinite planning period considering an industry with two manufacturers competing in a common platform market. One manufacturer invests in R&D and produces green products, and the other produces nongreen products. Three platform advertising strategies are discussed systematically: the platform supports all advertising expenses for both manufacturers (PB), supports only green advertising expenses (PG), and implements a joint advertising plan (PJ) with the green manufacturer. The results reveal that the equilibrium price, R&D effort, and advertising level of products increase as the current green degree increases, while the green degree shows a monotonic trend over time and finally tends to be a stable value. The results also indicate that, in the three models, the green degree and the profits of all players with the PG strategy are the lowest. Compared with the PB strategy, although the PJ strategy may not maximize the profits of all players, from environmental perspective, the strategy would make the alliance achieve the best environmental performance.
Highlights
With the development of the Internet, the market based on digital platforms is developing rapidly and has occupied a large share of the economy [1, 2]
Concluding Remarks and Future Research is study compares platform-led advertising strategies in three models, in which two manufacturers compete in a common platform market. e essential difference among these strategies in the three models lies in the allocation of platform advertising investment
E results reveal that the equilibrium price and advertising level of products increase as the current green degree increases, while the green degree shows a monotonic trend over time and tends to be a stable value
Summary
With the development of the Internet, the market based on digital platforms is developing rapidly and has occupied a large share of the economy [1, 2]. Consumers’ awareness of environmental performance is the driving force promoting green supply chain operations. In order to attract consumers to buy products, manufacturers actively conduct R&D to improve the green degree of products. Many large enterprises, such as Haier, P&G, and Siemens, have insisted on environmental protection and sustainable development as their brand orientation and invest much money in R&D and innovation every year [5]. Sales platforms, as powerful leaders, can effectively influence the green performance of upstream companies by providing special advertising and transport channels. As one of the largest sales platforms in China, JD provides a convenient and efficient channel for green product circulation to promote the rapid growth of green brands on its platform. In the first half of 2017, the amount of green brand consumption on the JD platform increased by 86%, and the contribution rate to platform sales reached 14% [3]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
