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A differential game analysis on green technology innovation in a supply chain with information sharing of dynamic demand

Junyi Wei (Shanghai Maritime University, Shanghai, China)
Chuanxu Wang (Shanghai Maritime University, Shanghai, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 29 October 2021

Issue publication date: 17 January 2023

238

Abstract

Purpose

The objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a long-term perspective.

Design/methodology/approach

The authors consider a supply chain consisting of a manufacturer and a retailer. The retailer has access to the information of dynamic demand of the green product, whereas the manufacturer invests in green technology innovation. Differential game theory is adopted to establish three models under three different scenarios, namely (1) decentralized decision without information sharing of dynamic demand (Model N-D), (2) decentralized decision with information sharing of dynamic demand (Model S-D) and (3) centralized decision with information sharing of dynamic demand (Model S-C).

Findings

The optimal equilibrium results show that information sharing of dynamic demand can improve the green technology innovation level and increase the green technology stocks only in centralized supply chain. In the long term, the information sharing of dynamic demand can make the retailer more profitable. If the influence of green technology innovation on green technology stocks is great enough or the cost coefficient of green technology innovation is small enough, the manufacturer and decentralized supply chain can benefit from information sharing. In centralized supply chain, the value of demand information sharing is greater than that of decentralized supply chain.

Originality/value

The authors used game theory to investigate demand information sharing and the green technology innovation in a supply chain. Specially, the demand information is dynamic, which is a variable that changes over time. Moreover, our research is based on a long-term perspective. Thus, differential game is adopted in this paper.

Keywords

Acknowledgements

The authors are grateful to the editors and anonymous referees for their valuable comments. This paper is supported by the National Natural Science Foundation of China (No. 71974123) and Innovation Program of Shanghai Municipal Education Commission (No. 2017-01-07-00-10-E00016).

Citation

Wei, J. and Wang, C. (2023), "A differential game analysis on green technology innovation in a supply chain with information sharing of dynamic demand", Kybernetes, Vol. 52 No. 1, pp. 362-400. https://doi.org/10.1108/K-04-2021-0296

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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