Abstract
Considering firm’s innovation input of green products and channel service, this paper, in dynamic environment, studies a dynamic price game model in a dual-channel green supply chain and focuses on the effect of parameter changing on the pricing strategies and complexity of the dynamic system. Using dynamic theory, the complex behaviors of the dynamic system are discussed; besides, the parameter adaptation method is adopted to restrain the chaos phenomenon. The conclusions are as follows: the stable scope of the green supply chain system enlarges with decision makers’ risk-aversion level increasing and decreases with service value increasing; excessive adjustment of price parameters will make the green supply chain system fall into chaos with a large entropy value; the attraction domain of initial prices shrinks with price adjustment speed increasing and enlarges with the channel service values raising. As the dynamic game model system is in a chaotic state, the profit of the manufacturer will be damaged, while the efficiency of the retailer will be improved. The system would be kept at a stable state and casts off chaos by the parameter adaptation method. Results are significant for the manager to make reasonable price decision.
Highlights
At present, China is the largest producer and consumer of household appliances in the world. e development of the home appliance industry has made great contribution to the economic development
By the differential game approach, considering knowledge spillovers are endogenously caused by the research and development (R&D) process, Lee et al [9] collected and analyzed data from 133 companies in Malaysia and showed that there is a certain connection between technology innovation input and supply chain practice in manufacturing firms
In three different contract situations, Wang and Shin [10] explored the influence of different contracts with endogenous upstream innovation and found that supply chain decisions could be coordinated by the profit-sharing contract considering investment in innovation, whereas the other two contracts would lead to insufficient investment in Complexity innovation of supply chains
Summary
China is the largest producer and consumer of household appliances in the world. e development of the home appliance industry has made great contribution to the economic development. For household appliance enterprises, increasing their research and development (R&D) investment for green product can meet the market demand for intelligent safety products and improve their independent innovation ability and market competitiveness In this environment, the dynamic price game of enterprises considering technological innovation and channel service has attracted wide attention from business and academia. Li et al [34] constructed a dual-channel valued chain in which the manufacturer made green innovation input and the retailer provided channel service, and they make the dynamic price game in decentralized and centralized decisions. Using game theory and nonlinear dynamics theory, we discuss the equilibrium points and the complex dynamic behaviors of the dynamic system and study the effects of channel service level and riskaversion level on optimal pricing, stability, and utility of the dual-channel value chain system.
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