Presentation
A Game Theoretic Model of the Market Competition between Green and Ordinary Products
IIE Annual Conference
(2007)
Abstract
Two groups of “ordinary” and “green” companies produce a same type of product with different materials and
techniques. A game theoretic model is proposed to analyze their competition in the market, and obtain the dynamic equilibrium under the free entry assumption. Sensitivity analysis results from the model suggest that sustainable product design, tax reduction, public awareness and preference of the economical and environmental advantages of green products are the key recipes for the healthy growth of green products in the market.
Keywords
- Green products,
- Cournot competition,
- dynamic equilibrium.
Disciplines
Publication Date
2007
Comments
This is a proceeding published as Wang, Lizhi, Guiping Hu, and Bopaya Bidanda. "A Game Theoretic Model of the Market Competition between Green and Ordinary Products." In IIE Annual Conference. Proceedings, p. 530. Institute of Industrial and Systems Engineers (IISE), 2007. Posted with permission.
Citation Information
Guiping Hu, Lizhi Wang and Bopaya Bidanda. "A Game Theoretic Model of the Market Competition between Green and Ordinary Products" IIE Annual Conference (2007) Available at: http://works.bepress.com/guiping_hu/39/