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Proceedings of the 3rd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2024, September 6–8, 2024, Jinan, China

Research Article

A Study on Dual-Channel Green Supply Chain Decision Making Considering Free-riding Behavior under Government Subsidies

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  • @INPROCEEDINGS{10.4108/eai.6-9-2024.2353630,
        author={Yongfei  Li and Chenxiao  Wu},
        title={A Study on Dual-Channel Green Supply Chain Decision Making Considering Free-riding Behavior under Government Subsidies},
        proceedings={Proceedings of the 3rd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2024, September 6--8, 2024, Jinan, China},
        publisher={EAI},
        proceedings_a={ICPDI},
        year={2024},
        month={12},
        keywords={government subsidies two-channel supply chain free-riding behavior stackelberg game},
        doi={10.4108/eai.6-9-2024.2353630}
    }
    
  • Yongfei Li
    Chenxiao Wu
    Year: 2024
    A Study on Dual-Channel Green Supply Chain Decision Making Considering Free-riding Behavior under Government Subsidies
    ICPDI
    EAI
    DOI: 10.4108/eai.6-9-2024.2353630
Yongfei Li1, Chenxiao Wu1,*
  • 1: Xi'an University of Posts and Telecommunications
*Contact email: 1005565510@qq.com

Abstract

Amidst the context of government subsidies provided to manufacturers, this paper explores the influence of consumer free-riding behavior in the market on the pricing strategies of dual-channel green supply chains. By conducting comparative analyses, the study discloses the effects of consumer free-riding presence or absence on pricing strategies and profit margins within dual-channel green supply chains. This analysis demonstrates how consumer free-riding behavior, whether present or absent, influences supply chain decision-making processes and profitability. The study’s findings indicate that, firstly, the profits of manufacturers tend to follow an inverted U-shaped curve rather than showing continuous growth with increasing consumer free-riding coefficients. This suggests that beyond a certain threshold of consumer free-riding, there is a potential decline in manufacturers' profits. Secondly, consumer free-riding behavior does not always favor manufacturers; in some instances, it may actually be detrimental to their interests. Lastly, the phenomenon of consumer "free-riding" could negatively impact environmental conservation by diminishing manufacturers' incentives for green production and lowering retailers' commitment to promotional activities. These insights are critical for comprehending the influence of consumer behavior on supply chain decisions and for formulating effective supply chain management tactics.

Keywords
government subsidies two-channel supply chain free-riding behavior stackelberg game
Published
2024-12-16
Publisher
EAI
http://dx.doi.org/10.4108/eai.6-9-2024.2353630
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