Game theory analysis of operational decision-making in green supply chain: The impact of consumer preferences

International Business School Suzhou, Xi’an Jiaotong-Liverpool University, Suzhou, 215100, China

^* Corresponding author: Ruomeng.Shi22@alumni.xjtlu.edu.cn

Abstract

In the current global context of increasing emphasis on sustainable development, high carbon emissions and resource waste in traditional supply chains have become critical factors affecting supply chain efficiency. This paper conducts an in-depth analysis of green supply chain operational decisions from the perspective of consumer green preferences, utilizing game theory. Through the construction of Nash equilibrium, Stackelberg competition, and cooperative game models, this study explores the decision-making behaviors of suppliers and retailers and their interaction mechanisms under different game scenarios. The research findings indicate that as consumer green preferences strengthen, the level of green investment by various supply chain parties significantly increases. Under Nash equilibrium conditions, the optimal wholesale price rises with the increase in consumer green preferences, thereby enhancing the overall profit of the supply chain. Furthermore, cooperative game results demonstrate that supply chain participants can achieve maximized total profits through cooperation, outperforming the performance under Nash equilibrium and Stackelberg competition models. Therefore, the significance and value of this research lie in providing theoretical and practical support for addressing issues of green strategic planning and cooperation mechanisms in supply chains, particularly emphasizing the impact of consumer green preferences on supply chain strategies and operational decisions.