Greenness and Pricing Decisions of Cooperative Supply Chains Considering Altruistic Preferences

Abstract

With the development of the economy and science technology, global resource shortages and environmental pressures have become the focus of attention. More and more consumers tend to buy non-polluting and environmentally friendly green products, and many manufacturers and retailers are beginning to produce or sell green products to enhance their competitive advantage in the market. Considering the green preference attributes of consumers, the altruistic preference is introduced into the supply chain, and we establish four models: two cooperative manufacturers and one retailer are completely self-interested, one retailer has altruistic preference, two cooperative manufacturers have altruistic preferences, and two cooperative manufacturers and one retailer have altruistic preferences. We address the optimal greenness and pricing decisions of supply chain members, and analyze the impact of altruistic preferences on supply chain decision-making and profits. The results show that the altruistic preference coefficient can significantly affect the decision-making and the profits of supply chain members, and when two manufacturers and one retailer consider altruistic preferences, the altruistic preference coefficients adopted by the three parties are in the certain ranges, the supply chain members’ altruistic preference coefficients can increase the whole supply chain profit. Through analysis, in the three cases where the retailer has altruistic preferences, two manufacturers have altruistic preferences, and two manufacturers and one retailer have altruistic preferences, two manufacturers should adopt higher altruistic preference coefficients, and the retailer should adopt a lower altruistic preference coefficient, and the product greenness under the three altruistic preferences is higher than the product greenness when there is no altruistic preference.