Search Results (61)

The attitude–behavior gap is an important issue in the consumer behavior theories. It is widely recognized that what people say is a little different from what they do in green consumption. This gap brings a great challenge for manufacturers to make sales and pricing strategies. Current studies on the attitude–behavior gap mainly focus on the explanation from the perspective of psychology and social behaviors. Few studies have considered quantitatively modeling the producing and pricing strategies of manufacturers under the attitude–behavior gap. This paper fills this gap by proposing a novel equilibrium analysis framework to model optimal strategies in both monopoly and duopoly scenarios. Our findings show that behavior-based strategies consistently outperform attitude-based strategies in both market structures. Furthermore, given the distribution of consumer attitudes towards the green products, we introduce an iterative algorithm to solve the equilibrium pricing strategy. In cases where the distribution is unknown, we demonstrate that manufacturers can obtain valuable insights through social surveys and empirical distributions. Numerical simulations validate our theoretical results, highlighting the practical implications of our model for manufacturers seeking to navigate the attitude-behavior gap. Full article

The global electric vehicle (EV) market has experienced sustained growth over the last decade; however, adoption within the commercial EV segment remains comparatively sluggish. This disparity is driven by three primary factors: the intrinsic limitations of lithium-ion battery chemistry, which imposes constraints on charge–discharge cycling, excessive charging durations for large battery packs used in long-haul semi-trucks, and diminished charging effectiveness under cold weather conditions, which further extends downtime and increases grid demand. To address these operational and infrastructural challenges, this article proposes a novel battery swapping station layout with ‘design-integrated safety’ features, enabling rapid battery replacement while ensuring compliance with safety codes and standards. Two complementary pricing strategies are developed for deployment under differing market structures. The first is a Cournot competition, applicable to deregulated environments, where firms strategically allocate battery inventory between EV swapping services and participation in a secondary energy market. As an extension of the Cournot competition model, the profit functions are analytically derived for a duopoly in which one firm engages in dual markets, enabling assessment of equilibrium outcomes under competitive conditions. The second strategy is a degradation-sensitive pricing framework, intended for regulated markets, which dynamically adjusts swap prices based on state-of-charge depletion, duty cycle intensity, environmental exposure, and nonlinear battery degradation effects. This formulation is evaluated for six representative operational cases, demonstrating its ability to incentivize shallow cycling, penalize deep discharges, and incorporate fair usage-based pricing. The proposed architectures and pricing models offer a viable pathway to accelerate commercial EV adoption while optimizing asset utilization and profitability for station operators. Full article

A Cournot triopoly is a type of oligopoly market involving three firms that produce and sell homogeneous or similar products without cooperating with one another. In Cournot models, firms’ decisions about production levels play a crucial role in determining overall market output. Compared to duopoly models, oligopolies with more than two firms have received relatively less attention in the literature. Nevertheless, triopoly models are more reflective of real-world market conditions, even though analyzing their dynamics remains a complex challenge. A reaction–diffusion system of PDEs generalizing a nonlinear triopoly model describing a master–slave Cournot game is introduced. The effect of diffusion on the stability of Nash equilibrium is investigated. Self-diffusion alone cannot induce Turing pattern formation. In fact, linear stability analysis shows that cross-diffusion is the key mechanism for the formation of spatial patterns. The conditions for the onset of cross-diffusion-driven instability are obtained via linear stability analysis, and the formation of several Turing patterns is investigated through numerical simulations. Full article

In the context of increasing consumer environmental awareness (CEA), firms are progressively adopting corporate social responsibility (CSR) strategies that seek to align profitability with environmental objectives. This paper develops a mathematical model to explore the implications of CSR under two distinct scenarios: one that incorporates both social and environmental impacts and another that focuses solely on environmental concerns. The analysis is situated within a spatial mixed duopoly, where a CSR-oriented firm competes with a purely profit-maximising rival. A game-theoretical framework is employed, in which the CSR firm’s objective function is modelled as a weighted sum of private profits and the environmentally driven welfare of consumers. Equilibrium analysis demonstrates that CSR engagement improves market outcomes relative to a benchmark without CSR and generates positive externalities for the non-CSR firm. Moreover, the scenario prioritising environmental impact alone yields superior sustainability and welfare outcomes for both consumers and firms, despite identical demand and product differentiation conditions. These findings enhance our understanding of how CEA interacts with CSR strategies in imperfectly competitive markets, offering valuable insights for managerial decision-making and the formulation of environmental policy. Full article

Weather-dependent, volatile energy sources, such as wind power and solar photovoltaics (PV), contribute considerably to the German electric energy supply. The current German government aims to substantially increase their market share. Using high-resolution time-series data from energy production and demand measurements, we replicate and analyze scenarios from the “Klimaneutrales Deutschland 2045” (KND2045) study. KND2045 was the basis for the German Government’s 2021 decision to move the abolition of CO₂ emissions from 2050 to 2045. The primary question in KND2045 is whether security of supply can be maintained by relying primarily on an effective duopoly of wind and solar power. We simulate scenarios for 2023, 2030, and 2045 using 15-min time-resolved measurements of wind and solar energy production and demand from 2023 and 2024, incorporating battery and gas storage systems into our model. We assess the overall economic costs for these scenarios. Our calculations demonstrate that the KND2045 scenarios are infeasible, as significant supply gaps persist during dark wind lulls, compromising security of supply. Instead, we propose improvements to these scenarios by incorporating nuclear energy as a backup to address KND2045’s shortcomings. Full article

With the rapid development of e-commerce, Return Freight Insurance (RFI) has emerged as a vital tool for retailers and customers to mitigate the financial burden posed by high return rates in online shopping. This paper investigates the strategic decision-making of RFI providers (insurers), examining whether they should offer fixed-compensation insurance at a lower price or full-coverage insurance at a higher price under varying market conditions. Specifically, we develop game-theoretic models to analyze insurers’ strategic decisions in both monopoly and duopoly markets, accounting for customer return cost and product mismatch probability heterogeneity. Our findings reveal that in a monopoly market, when customer return costs are relatively low and concentrated, insurers benefit from offering fixed compensation insurance (i.e., pre-set reimbursement amounts) at a lower price to attract a broader customer base. By contrast, when return costs are more dispersed and higher, full-coverage insurance (which reimburses actual freight costs) becomes more profitable, as the insurer can utilize its flexible pricing power to attract higher-paying customer segments. In a duopoly market, customer return cost heterogeneity significantly influences market equilibrium. When heterogeneity is high, full-coverage insurance dominates, as insurers can leverage precise market segmentation to justify higher premiums. Conversely, when return costs are more uniform, fixed compensation insurance is preferred for its affordability, appealing to a wider range of customers. Full article

Customers’ bounded rationality significantly influences the effectiveness of advertising and related decision-making in customer-intensive services. This paper, based on the M/M/1 queuing model and incorporating the characteristics of customers’ bounded rationality, conducts an optimization analysis of the decision-making of customer-intensive service providers. In this optimization process, we use the Gumbel distribution to model the random noise in customers’ bounded rationality, where the scale parameter characterizes the degree of bounded rationality, and customers’ choices follow a multinomial logit (MNL) choice model. We adopt the symmetric Nash equilibrium to prove the uniqueness of equilibrium in the duopoly market. Furthermore, we derive the optimal service rate and corresponding advertising expenditure levels for both monopoly and duopoly markets through optimization analysis. Our findings indicate that, regardless of market structure, an increase in the scale parameter of the Gumbel distribution, which captures customers’ bounded rationality, leads service providers to adopt a lower service rate to attract customers and reduce advertising expenditures. Notably, this strategy paradoxically results in higher profits for service providers. Additionally, we mathematically prove that, in both monopoly and duopoly markets, the proportion of customers choosing to enter the system follows a unimodal function of the service rate, and a unique and stable Nash equilibrium exists. Furthermore, we find that in the duopoly market, service providers, as a competitive strategy, set a lower service rate compared to the monopoly market. However, in the duopoly market, the proportion of customers attracted by each service provider is lower than in the monopoly market. We also confirmed the results through numerical simulation analysis. Full article

In the current context of severe environmental challenges and climate change, the low-carbon green development model has become an international consensus. This study establishes a green supply chain duopoly competition model, considering two types of government subsidies and data-driven marketing (DDM) to help achieve supply chain development. The aim of the research is to explore how to provide green subsidies, enhance green levels, maintain competitive advantage, and improve profits in supply chain enterprises with inconsistent green levels. The study discusses the impact of green consumer preferences, market competition, and DDM quality on the profits of supply chain enterprises. It also analyzes how to use supply chain contracts to achieve coordination and optimization within the supply chain. The findings are summarized as follows. (1) As consumer preferences for green products increase, the unit subsidy model continues to enhance performance and market share more effectively than the total subsidy model. (2) The unit subsidy model requires a more relaxed subsidy coefficient, making it easier for enterprises to develop without needing high subsidies. It consistently achieves better total performance, particularly with improved DDM quality. (3) Manufacturers and retailers can achieve a win–win situation through internal coordination of the supply chain via wholesale price contracts. (4) Under certain conditions, consumers more sensitive to green products will increase the product pricing of both M1 and M2. The level of greenness of M2 will also increase. But also, the wholesale and retail prices of M1 will decrease because of the effect of DDM. (5) The effect of the intensity of market competition on pricing decisions is more complex. Under certain conditions, the market competition coefficient has a positive impact on the pricing of M1 and a negative impact on the pricing and green level of M2. This can be changed due to an increase in the level of DDM quality, where an increase in the market competition coefficient results in lower pricing for M1 and higher pricing for M2. The green level for M2 is also improved. In addition, the improvement in DDM quality consistently has a positive impact on pricing decisions and green levels for M2. Pricing decisions for M1 are affected differently, depending on the customer’s sensitivity to DDM. Full article

Improving the performance of the operations of ride-hailing platforms (RHPs) by adequately considering drivers’ switching behaviors is becoming crucial for their profitability and sustainability. This study explores how to optimize the operations of RHPs by investigating the impact of commission rates on drivers’ switching behaviors in a dynamic mobility market. Two queue-theory-based mathematical models have been developed to explore the relationship between commission rates, drivers’ switching behaviors, and critical platform parameters in optimizing the operations of RHPs. Numerical examples are presented to demonstrate the applicability of such models in determining the best commission rate to optimize the operations of RHPs in duopoly and fully competitive market conditions. The findings suggest that understanding the intricate relationship between commission rates, drivers’ switching behaviors, and critical platform parameters is significant for RHPs in formulating appropriate strategies and policies to ensure their sustainable operations. Full article

The paper serves to discuss the evolution of platform business models in tourism, the dynamics of market concentration, and regulatory interventions. We present the historical timeline of digitalization in tourism distribution models, starting from the Global Distribution Systems (GDS), and continuing with Online Travel Agencies (OTAs) and their market concentration in the duopoly of Expedia Group versus Booking Holdings Group. We continue to discuss the slow, yet uncertain, breaking of the global duopoly in the travel platforms market. On the one hand, the duopoly is challenged from the “bottom up”, where Airbnb is the most successful example, riding on the wave of popularity of the ideals of the “sharing economy” and the aftermaths of the 2008 global financial crisis. On the other hand, the duopoly is challenged from the “top down”—the most powerful digital players have started to extend their operations to tourism. The second section of the paper identifies three current areas of platformization in tourism operations—distribution, promotion and HRM. We analyze available industry and public statistics indicators in Europe for each of the three dimensions. Finally, we discuss the regulatory responses to the market concentration of travel distribution platforms. Although the challenge of market concentration is a global issue, and the threats are the same in many countries, we limit the discussion of regulation to the European context. In conclusion we discuss the possibilities of future development, and point to the threat of the further acceleration and interconnection of platformization and market concentration in the travel business. Full article

In the trade environment of a globalized economy, tariffs play a crucial role in transnational supply chains. At the same time, the power structure of the supply chain also plays an important role in the decision making and income distribution of a transnational supply chain. Therefore, we construct game-theoretic models to analyze the impacts of tariffs and power structures on the decision making and revenue distribution of transnational supply chains. First, we consider a bilateral monopoly model consisting of a Chinese manufacturer and a U.S. retailer and analyze the effects of tariffs and power structures on decision making and revenue distributions in this supply chain. Then, we extend the model to a duopoly competition model consisting of two Chinese manufacturers and one American retailer, further analyzing the roles of tariffs and power structures. The results indicate that in the bilateral monopoly model, the impact of tariffs on the manufacturer’s profits is always greater than on the retailer’s profits under a manufacturer-led circumstance. However, in a competitive model, when the market size is large, the impact of tariffs on the manufacturer’s profits exceeds that of the retailer’s profits; conversely, when the market size is smaller, the impact of tariffs on the retailer’s profits is greater than on the manufacturer’s profits. Furthermore, we find that in the duopoly competition model, under the manufacturer-led circumstance, both the manufacturer and the retailer earn the highest profits. Full article

This paper investigates the effects of optimism in an e-commerce supply chain where two third-party sellers offer substitutable products through a shared e-commerce platform. In this context, optimism is defined as a cognitive bias in which third-party sellers underestimate the probability of encountering low market potential. We present a game-theoretic model to characterize the equilibrium strategies of both the platform and the sellers. Our analysis reveals that when both sellers exhibit optimism bias, this bias invariably leads to lower expected profits for them. However, seller optimism can benefit both the platform and the whole system. That is, as sellers become more biased, the profits of the platform and the entire supply chain increase. Moreover, when a biased seller competes with a sophisticated one, unilateral optimism can result in a win–lose outcome in which the optimistic seller benefits from her bias at the expense of her sophisticated rival. Indeed, we demonstrate that optimism can confer a competitive advantage in a duopoly, allowing the more biased seller to earn higher profits than its less biased competitor—even if the latter is unbiased or sophisticated. Our work sheds light on the conditions under which optimism bias may have detrimental or beneficial impacts on e-commerce supply chain operations. Full article

As is well known, limiting carbon emissions is an important link in mitigating global climate change. Carbon quotas are a widely used policy tool by governments around the world without increasing the financial burden on the government. To study the impact of carbon quota policies on the clean transformation of the key carbon emitting industry—the power industry, we established a duopoly model and conducted an analysis and numerical simulation. The research has found that the effectiveness of carbon quota policies is closely related to the level of competition within the power supply chain and is also influenced by the market share of clean energy power generation enterprises. Moreover, in some cases, it may have the opposite effect. Full article

The evolution of tax exemption policies and consumer preferences for low-carbon products affect firms’ optimal pricing strategy selection in a competitive duopoly market. In our study, we build a two-period pricing model to examine the pricing strategy choices between low-carbon and traditional firms. Low-carbon firms offer consumers greater value, improving their overall experience and satisfaction. Given the evolution of government policies from tax exemption to taxation for low-carbon products, we divide the changes in carbon tax into two periods. Since each firm can choose either the uniform pricing strategy (setting the same price in both periods) or the tiered pricing strategy (setting different prices for two periods), four scenarios may occur. Conventional wisdom suggests that a firm’s pricing increases should result in a reduction in consumer demand. Interestingly, our results show that as traditional firm raises prices, consumer demand for traditional products could increase simultaneously in the second period. In such a case, the low-carbon firm selects the uniform pricing strategy and the traditional firm chooses the tiered pricing strategy. Moreover, as tax exemption policies evolve in duopoly markets, the cancellation of the tax exemption policy may intensify competition between traditional and low-carbon firms under certain conditions. Furthermore, given one firm’s pricing strategy, our results show that the other firm could adopt either a uniform pricing strategy or a tiered pricing strategy, which depends on the low-carbon advantage and tax rate. Full article

We develop an empirical model of the market for mobile services in the USA based on providers’ response functions. Guided by a duopoly model, we obtain our empirical response functions from an approximation of quarterly response data on smartphone subscriptions by sigmoid functions of time. The robustness analysis suggests that our model fits the data well and outperforms the regression model. Further, we demonstrate that our empirical response functions satisfy the conditions for semi-cyclic contractions which guarantee the existence, uniqueness and stability of long-run equilibrium. Full article