Optimal Green Degree and Pricing Decisions of the E-Tailer and Supplier With Alternative Choices

Abstract

The decision making of all e-commerce members is an important issue, such as the optimal green degree and pricing decisions of the e-tailer and supplier when they choose whether to provide green products or normal products for the market. As many people begin to focus on environmental protection, green products will become increasingly popular, although their prices are higher than that of normal ones, and the supplier should pay more to obtain green products than normal ones. Based on different choices, this study builds four e-teiler and supplier models, presents four proportions, analyzes their optimal decisions with different scenarios, and evaluates the influences of the green elasticity coefficient, distribution cost, manufacturing cost and green innovation factor on the e-tailer and supplier. In addition, the influences of the green elasticity coefficient, distribution cost, manufacturing cost, and green innovation factor on the green degree of green products are also considered. Through experimental simulations, we illustrate the optimal green degree and pricing decisions of the e-tailer and supplier, and find that the green elasticity coefficient and green degree are positively correlated, but distribution cost, manufacturing cost, green innovation factor, and green degree are negatively correlated. These results have valuable guiding significance for e-tailers and suppliers making operational decisions with green products.