Navigating Risk Aversion in Green Supply Chains: The Retailer Competition Perspective

This study examines the intricate pricing and coordination issues shaped by risk-averse behavior and retailer competition in the green supply chain. Firstly, we derive equilibrium strategies for stakeholders by employing models. The impact of the risk aversion level on pricing and greenness is analyzed. Secondly, we conduct comparative analyses of optimal decisions under the three models. Finally, we discuss the coordination of cost-sharing contracts and validate the relevant conclusions through numerical simulation analysis. By linking firms’ decision-making behaviors with product greenness, the study further shows how operational choices influence the overall sustainability performance of the supply chain. Our findings reveal a downward trend in wholesale price, greenness, and retail price as risk aversion levels escalate. Additionally, we uncover the dual effect of cost-sharing contracts: while they enhance environmental sustainability by boosting greenness, they also bolster supply chain profitability and facilitate coordination efforts. These insights offer practical guidance for establishing more sustainable green supply chains in competitive and risk-sensitive environments.