The effects of power structure and government intervention on green dual-channel supply chain

This paper considers one manufacturer-two retailers dual-channel supply chain that the manufacturer sells same products to two retailers and an environmentally conscious government working with the manufacturer to improve the green level of products. A new concept is carried out called different power structures between two retailers in the green supply chain, which consists balanced power structure and dominant power retailer structure in the market. Then four scenarios are proposed based on different power structures among retailers and cooperation between government and manufacturer. The optimal analytical solutions under four scenarios are derived through backward derivation in Stackelberg game. The influence of power imbalance of retailers on manufacturer’s environmental activities, pricing and profits is explained. Finally, the effects of government decision and power structure on profits are proposed.