Abstract

Based on the actual situation that the green market started to develop in China today, how to enhance the activity of supplier’s technology R&D is discussed in the study. According to a two-echelon supply chain system consists of a manufacturer and a supplier, under the asymmetric information of supplier’s R&D efforts level, the incentive mechanism for supplier to improve the green degree of intermediate goods is designed. The proposed incentive mechanism can stimulate the supplier’s R&D effort level at its maximum and achieve the system revenue as much as possible. The conclusion has a good practical guidance to operational decision-making of the members of green supply chain in the early green market.

Keywords:

Green supply chain, incentive mechanism, moral hazard, supplier, technology R&D,

References

Competing interests

The authors have no competing interests.

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Copyright

The authors have no competing interests.