Abstract: As the global environmental issues emerge along with the involvement of governmental influences by means of green legislations and financial instruments (e.g., green taxation and subsidy), interactions between producers and reverse logistics suppliers (termed RL-supplier for short) are unavoidable in green supply chains before reaching the condition of cooperative synergism. Therefore, I intend to propose a 3-year research proposal to investigate the problem of negotiations between producers and RL-suppliers in oligopoly competition contexts under the influence of governmental take-back legislations and financial instruments. In the 1st-year project, I plan to propose a bargaining framework to formulate the aforementioned producer-RL-supplier negotiation problems in competing green supply chains. Particularly, a three-stage game-based model is formulated to seek for the equilibrium solutions of competing green supply chains. Stage 1 conceptualizes the government’s objective by maximizing the social welfare to determine the optimal solutions of green taxes and subsidies. This is followed by the use of asymmetric Nash bargaining game with uncertainties of reservation prices, expected profits and breakdown risks from outside options to seek for negotiation solutions of green supply chains in Stage 2, and determine production quantities in Stage 3. Based on the derived results, I would like to extend the proposed Nash bargaining game model for the investigation of a more complicated case: long-term contract design for the sustainability of green supply chain cooperation using dynamic games with incomplete information. Therein, I plan to incorporate the technology of modified-generalized sequential probability ratio tests (M-GSPRT) into a dynamic game model to address the above issue. This is followed by the 3rd-year project aiming at the integration with green consumer behavior modeling with the proposed green supply chain cooperation model to characterize the effect of green consumer behavior on green supply chain management (GSCM).
Green supply chain cooperation
Nash bargaining game
Government’s financial instruments