The Decision Analysis on the Development of Green Products Based upon Manufactures’ Competition

Abstract

Manufacturing green products is an important way for sustainable development of enterprises. In view of power shortage of green product innovation caused by the income uncertainty, combined with currently domestic conditions, the development of green products is divided into three stages: the innovation stage, the promotion stage and the popularization stage. Based on the game theory and related optimization approaches, how to make decision by manufactures at every stage are analyzed. The results show that, under the certain internal and external conditions, the innovator of the green product has the first-mover advantage, and the competition among peer manufactures is the important force and effective channel to spread the green products, and thus the consumer welfare is also increasing. The conclusions are helpful to guide the formulation and implementation of manufactures’ green-product development strategy, as well as the cultivation and development of the consumer market.