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Pricing Strategy Analysis Considering ConsumerEnvironmental Preference and Risk Aversion(PDF)


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Pricing Strategy Analysis Considering ConsumerEnvironmental Preference and Risk Aversion
Chen Yu1Qian Gang1Shen Lingling12
(1.School of Computer Science and Technology,Nanjing Normal University,Nanjing 210023,China)(2.Business School,Nanjing Normal University,Nanjing 210023,China)
environmental preferencerisk aversiongovernment subsidiesgreen supply chaingame analysis
Recently,the environment has become an urgent problem. How to encourage manufacturers to produce high green products is a major problem faced by all countries. We propose the Cournot game model in duopoly,and find every manufacturer’s optimal pricing decision by using the mean variance theory against the background of game analysis between manufacturers with different product greenness,considering consumer environmental preference,the degree of manufacturer risk aversion,product greenness and government’s subsidies. Finally,the numerical simulation is conducted to discuss the effect of consumer environmental preference and manufacturer risk aversion. Results show that,when the other factors are constants,the price will decrease as the consumer environmental preference,manufacturer risk aversion and government subsidies increased. The lowering of the price can improve greenness of the products. All of these conclusions provide a reference and guiding for the manufacturers to make the final decision.


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Last Update: 2017-06-30