4.7 Article

Shareholding strategies for selling green products on online platforms in a two-echelon supply chain

Publisher

PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2021.102261

Keywords

Green supply chain; Game theory; Platform retailing; Shareholding strategy; Pareto region

Funding

  1. National Natural Science Foundation of China [71771166]
  2. Tianjin Natural Science Foundation [18JCQNJC04200]
  3. Ser Cymru II COFUND Fellowship, UK [18ZLZDZF00070]
  4. Tianjin Science and Technology Development Strategic Research Plan [18ZLZDZF00070]

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This study examines the practical vertical shareholding phenomena in platform retailing, proposing three shareholding strategies in a supplier-lead green supply chain. It finds that cross-shareholding can be joint optimal when both shareholding rates are low, leading to improved performances for the players through certain coordinated ways.
Observing the practical vertical shareholding phenomena in platform retailing, this paper considers two shareholding rates (forward and backward) and proposes three shareholding strategies (forward, backward and cross-shareholding) in a supplier-lead green supply chain to investigate the operation mechanism behind it. Shareholding's impacts on green investment, prices and profits are provided and the players' strategy preferences are discussed. We interestingly find that cross-shareholding can be joint optimal when the two shareholding rates are both sufficiently low and thereby Pareto region goes with it. Meanwhile, both the players' performances can be further improved through certain coordinated ways.

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