A duopoly game with heterogeneous green supply chains in optimal price and market stability with consumer green preference

Abstract As environmental problems exponentially rising, the necessity of environmental protection and green purchase behavior is addressed by the increasing consumers. This paper aims to analyze the effects of consumer green preference on members' optimal decisions and the speed of the adjustment of the optimal price strategies for heterogeneous green supply chains. The results elaborate that consumer green preference significantly influences the product green level of the manufacturer and the supplier and has intricate effects on the speed of the adjustment of the boundedly rational supply chain which directly affects the social stability. The vicious competition and the unbalance market are caused by the overreaction of the boundedly rational and naive supply chain to consumer green preference.