Abstract
This paper constructs a dual-channel value chain composed of one altruistic manufacturer and one altruistic retailer, where the manufacturer makes green innovation input for green products and sells its green products to its customers through both the direct channel and the traditional channel, the retailer provides channel service for customers and sells green products through the traditional channel. We consider two scenarios in which the manufacturer and the retailer make decentralized and centralized decisions, respectively. We develop two dynamic game models for the two scenarios and analyze the dynamic behaviors of the two dynamic game models using bifurcation diagram, LLE (largest Lyapunov exponent) and attraction of basin, etc. We find that the stability region in decentralized decision model is greater than that of centralized decision, and narrow with increase of service value, green innovation input. In the decentralized decision model, the stability of the system decreases with the altruistic behavior increasing. With the price adjustment speed increasing, the dual-channel green value chain system enters into chaotic state through flip bifurcation or N-S bifurcation. In the stable state, the manufacturer and the retailer can obtain the maximum utility with the appropriate value of green innovation input. In the chaotic state, the utilities of the manufacturer and retailer are greatly affected and significantly reduced. This study will provide good guidance for sustainable development decision-making of dual-channel green value chain.
Highlights
In 2017, the proposal of high-quality development indicates that China’s economy has changed from a high-speed growth stage to a high-quality development stage
Public Health 2019, 16, 4566 supply system is an interesting topic. How does it affect the stability of dual-channel value chain system when the manufacturer invests in green innovation and the retailer invests in channel service?
Using game theory and nonlinear dynamics theory, we discuss the equilibrium points and the complex dynamic behaviors of two price game models; and we study the effects of green innovation and channel service on optimal pricing, stability and utility of dual-channel value chain system
Summary
In 2017, the proposal of high-quality development indicates that China’s economy has changed from a high-speed growth stage to a high-quality development stage. Public Health 2019, 16, 4566 supply system is an interesting topic How does it affect the stability of dual-channel value chain system when the manufacturer invests in green innovation and the retailer invests in channel service?. How does service value and green innovation input affect price decision and system profit? Based on these problems, this paper establishes two price game models considering the factors of green innovation input and channel service in two scenarios separately (decentralized decision scenario and centralized decision scenario). Using game theory and nonlinear dynamics theory, we discuss the equilibrium points and the complex dynamic behaviors of two price game models; and we study the effects of green innovation and channel service on optimal pricing, stability and utility of dual-channel value chain system.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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 callMore From: International journal of environmental research and public health
Disclaimer: 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.
