A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions
Purpose: Governments today are increasingly focused on managing environmental and economic challenges to safeguard the environment. Consequently, companies are striving to remain competitive in society. This paper introduces a revenue-sharing agreement between the retailer and the manufacturer. The...
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| Format: | Article |
| Language: | fas |
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Ayandegan Institute of Higher Education, Tonekabon,
2024-09-01
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| Series: | تصمیم گیری و تحقیق در عملیات |
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| Online Access: | https://www.journal-dmor.ir/article_211085_a97cf2ecc7a0a4396c6badd80920e8ec.pdf |
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| author | Zahra Ghayoumian Morteza Rasti Barzoki Mohammad-Ali Eghbali |
| author_facet | Zahra Ghayoumian Morteza Rasti Barzoki Mohammad-Ali Eghbali |
| author_sort | Zahra Ghayoumian |
| collection | DOAJ |
| description | Purpose: Governments today are increasingly focused on managing environmental and economic challenges to safeguard the environment. Consequently, companies are striving to remain competitive in society. This paper introduces a revenue-sharing agreement between the retailer and the manufacturer. The contract is designed to alleviate the research and development costs incurred by the manufacturer in greening their products. Additionally, the paper incorporates consumer surplus as a consideration for the social dimension, which is a key pillar of sustainability.Methodology: Government interventions in this paper are modeled as subsidies that influence the final price of the product. Notably, this study, for the first time, integrates all three dimensions of sustainability—social, economic, and environmental—within a game-theoretic framework that includes government intervention and a revenue-sharing agreement between the retailer and the manufacturer.Findings: The modeling results demonstrated that incorporating consumer surplus enhances the profitability of both the government and the manufacturer. Although consumer surplus reduces wholesale prices and revenue-sharing proportions, it leads to increased product sales. This boosts the benefits for consumers and members of the supply chain, contributing to improved greenness and higher levels of product sustainability. Consumers show a preference for purchasing products with greater environmental benefits; however, higher levels of greenness require increased production costs. Manufacturers can boost their sales through research and development efforts and by raising public awareness about green products. As a result, manufacturers, retailers, and the government adjust prices and subsidies to maximize their respective profits, altering the overall profitability of the supply chain. The findings highlight that social welfare is a crucial consideration in supply chains, as it significantly enhances the profitability of chain members and promotes higher levels of green production.Originality/Value: This paper is the first to examine all dimensions of sustainability—social, economic, and environmental—within a theoretical framework that incorporates government intervention and the impact of consumer surplus on pricing policies and the greening of products. The scientific contribution of this research lies in providing new insights to managers and policymakers to enhance strategic decision-making aimed at improving sustainability and social welfare within green supply chains. |
| format | Article |
| id | doaj-art-e623571123d445f19cc8a5a80691b28e |
| institution | Kabale University |
| issn | 2538-5097 2676-6159 |
| language | fas |
| publishDate | 2024-09-01 |
| publisher | Ayandegan Institute of Higher Education, Tonekabon, |
| record_format | Article |
| series | تصمیم گیری و تحقیق در عملیات |
| spelling | doaj-art-e623571123d445f19cc8a5a80691b28e2025-01-30T15:04:05ZfasAyandegan Institute of Higher Education, Tonekabon,تصمیم گیری و تحقیق در عملیات2538-50972676-61592024-09-019361663010.22105/dmor.2024.448152.1860211085A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventionsZahra Ghayoumian0Morteza Rasti Barzoki1Mohammad-Ali Eghbali2Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan, Iran.Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan, Iran.Department of Industrial Engineering, Birjand University of Technology, Birjand, Iran.Purpose: Governments today are increasingly focused on managing environmental and economic challenges to safeguard the environment. Consequently, companies are striving to remain competitive in society. This paper introduces a revenue-sharing agreement between the retailer and the manufacturer. The contract is designed to alleviate the research and development costs incurred by the manufacturer in greening their products. Additionally, the paper incorporates consumer surplus as a consideration for the social dimension, which is a key pillar of sustainability.Methodology: Government interventions in this paper are modeled as subsidies that influence the final price of the product. Notably, this study, for the first time, integrates all three dimensions of sustainability—social, economic, and environmental—within a game-theoretic framework that includes government intervention and a revenue-sharing agreement between the retailer and the manufacturer.Findings: The modeling results demonstrated that incorporating consumer surplus enhances the profitability of both the government and the manufacturer. Although consumer surplus reduces wholesale prices and revenue-sharing proportions, it leads to increased product sales. This boosts the benefits for consumers and members of the supply chain, contributing to improved greenness and higher levels of product sustainability. Consumers show a preference for purchasing products with greater environmental benefits; however, higher levels of greenness require increased production costs. Manufacturers can boost their sales through research and development efforts and by raising public awareness about green products. As a result, manufacturers, retailers, and the government adjust prices and subsidies to maximize their respective profits, altering the overall profitability of the supply chain. The findings highlight that social welfare is a crucial consideration in supply chains, as it significantly enhances the profitability of chain members and promotes higher levels of green production.Originality/Value: This paper is the first to examine all dimensions of sustainability—social, economic, and environmental—within a theoretical framework that incorporates government intervention and the impact of consumer surplus on pricing policies and the greening of products. The scientific contribution of this research lies in providing new insights to managers and policymakers to enhance strategic decision-making aimed at improving sustainability and social welfare within green supply chains.https://www.journal-dmor.ir/article_211085_a97cf2ecc7a0a4396c6badd80920e8ec.pdfgreen supply chainrevenue-sharing contractgame theorygovernment interventionconsumer surplus |
| spellingShingle | Zahra Ghayoumian Morteza Rasti Barzoki Mohammad-Ali Eghbali A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions تصمیم گیری و تحقیق در عملیات green supply chain revenue-sharing contract game theory government intervention consumer surplus |
| title | A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| title_full | A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| title_fullStr | A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| title_full_unstemmed | A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| title_short | A game-theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| title_sort | game theoretic approach for analyzing the effects of revenue sharing contracts and consumer surplus on supply chain sustainability under government interventions |
| topic | green supply chain revenue-sharing contract game theory government intervention consumer surplus |
| url | https://www.journal-dmor.ir/article_211085_a97cf2ecc7a0a4396c6badd80920e8ec.pdf |
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