Differential game model examines green product pricing in response to consumer behavior, indicating performance gains through cooperation.
As a crucial vehicle for advancing the transition to a green low-carbon economy, the green supply chain plays a pivotal role in alleviating pollution pressures and facilitating the green transformation of products. Existing studies mainly focus on static optimization and cost coordination in green supply chains, with limited attention to the dynamic impact of consumer behavior on green production and channel coordination. Based on consumer green preferences and the evolution of reference prices, we developed a differential game model for a two-tier green supply chain composed of a manufacturer and a retailer. The model incorporates green goodwill and consumer memory variables to capture the dynamic interaction among product greenness, sales effort, and consumer perception. By comparing the dynamic optimal response paths under integrated and non-integrated strategies, the study analyzes how reference price effects and goodwill accumulation influence decision-making and system performance. The results show that the stable reference price of green products is significantly higher than the actual selling price. When consumer environmental awareness is strong, cooperative strategies can markedly improve both green performance and supply chain profits, offering potential for Pareto improvement. This research enhances behavior-oriented modeling in green supply chains and provides theoretical and empirical support for designing collaboration mechanisms in green product promotion.
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Cao et al. (2025) studied this question.
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