Abstract
This paper studies how two technologies, Zero-Sum and Synergy, impact the market structure strategy for green products. We develop mathematical models to determine the optimal price, traditional quality, and environmental quality in order to maximize profit. We also perform sensitivity analysis to derive conditions under which a firm tends to adopt the Market Segmentation strategy rather than the Mass Marketing strategy. Our results indicate that to increase total green quality, investing in technology improvement to enable Synergy is more effective than introducing more products. Finally, we investigate the effects of government regulations on the selection of these two marketing strategies and two technologies.
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