The Game Model between Government Subsidies Act and Green Supply Chain

Abstract

In order to promote the development of green product market, the government will adopt fiscal subsidies to encourage enterprises and consumers. This paper builds the game model of the manufacturers and retailers from the aspect of green supply chain based on the government subsidies. Consider the green supply chain consisting of manufacturers and retailers, the influence of subsidy amount on the decision-making behaviors of the manufacturers, retailers and consumers respectively under the mode of government fiscal subsidies to manufacturers and consumers are studied. Analyze the influence of government subsidy on the decision-making behaviors of manufacturers, retailers and consumers through numerical simulation analysis, and further compare the difference between the manufacturer subsidy mode and consumer subsidy mode. The results indicate that: (1) the manufacturers and retailers will choose consumer subsidy mode; (2) the selection of subsidy mode by consumers is mainly influenced by the relative size of price sensitivity coefficient and subsidy sensitive coefficient.