Platform Selling Mode Selection Considering Consumer Reference Effect in Carbon Emission Reduction

Abstract

Considering the significant impact of the reference effect on consumer purchasing decisions and corporate profits, this paper mainly focuses on the influence of the reference effect of consumers in carbon emission reduction (CER) on the platform selling mode selection. To this end, this paper establishes a two-level supply chain consisting of a manufacturer who decides on CER in the production process and an online platform that conducts low-carbon publicity. Four differential game models in which the platform uses reselling mode or agency selling mode with or without consumer reference effect are established. The long-term stable cooperation relationship between the manufacturer and the platform, as well as the consumer surplus and social welfare under four models are further investigated. It is found that the reference effect on the platform selling mode is related to the low-carbon publicity effect and commission rate. When the reference effect exists, the intuition indicates that the platform will choose the reselling mode when the commission rate is relatively low. We clarify this result under the condition that the publicity effect is high. However, the manufacturer also prefers platform reselling, which is counterintuitive. When the commission rate is in the middle range, the platform chooses the agency selling mode, which is in line with the preference of the manufacturer. Surprisingly, when the platform’s publicity effect is low, the manufacturer and the platform reach stable cooperation in reselling mode when the commission rate is low or high, which is also counterintuitive. When the commission rate is in the middle range, they both prefer the agency selling mode. In addition, it is suggested that the triple benefits in economy, environment, and society are achieved as the optimal selling mode is confirmed in the presence of consumer reference effect in CER.