A Dynamic Game On Dual-channel Green Supply Chain With Service Free Riding And Price Difference

As the process of global green development continues to advance,the design and sale of green products is very important to protect the environment and achieve sustainable development.More and more enterprises begin to invest more technology cost to manufacture green products,and green supply chain management has attracted more and more attention from the government,enterprises and scholars.On the other hand,there are online and offline sales channels for green products.With the rapid development and maturity of e-commerce today,online direct channel is widely welcomed by consumers.There is a phenomenon among consumers that they experience services in offline retail stores,but turn to online channel to buy products.This phenomenon may aggravate channel conflicts and affect the sales of green products.Therefore,it is of great significance to study the game strategy of dual-channel green supply chain with service free-riding phenomenon and solve or mitigate channel conflicts for promoting the sales of green products and improving the service experience of consumers.This paper studies a dual-channel green product supply chain composed of a manufacturer and a retailer.The manufacturer opens online direct channel,while the retailer sells green product and provides services in the offline retail stores.Considering the phenomenon of service effort free-riding,this paper introduces channel price difference as a strategic tool to adjust channel conflicts,and conducts dynamic game solving and analysis on the centralized model,decentralized model and two-part tariff contract model.In centralized model,the optimal decision of supply chain members,the solutions are obtained and analyzed the degree of service effort free-riding and the price difference influence on decision-making,found that when the degree of service free-riding is small and the dual channel price difference decreases,that can stimulate to provide higher service levels and higher product green degree,the opposite is the opposite.In a decentralized model,through a two-stage game,solving the decision variables(the wholesale price,offline retail price,service level and product green degree)of the optimal solution,and through a set of numerical analysis,the results show that the appropriate degree of service free-riding and the dual channel price difference help to the decision making of retail price,service level and product green degree,to improve the supply chain profit.In the two-part tariff contract coordination model,both the manufacturer and the retailer can get a win-win result.In addition,this paper also conducts numerical analysis on other parameters to analyze their influences on supply chain members’ decisions,profits and social welfare.