A dynamic Stackelberg game for green supply chain management

TL;DR

This paper develops a dynamic hierarchical game model for allocating CSR in a decentralized three-tier supply chain, aiming to optimize profits and CSR levels through a Stackelberg game framework.

Contribution

It introduces a multi-period dynamic Stackelberg game model for CSR allocation in a decentralized supply chain, providing a hierarchical equilibrium solution.

Findings

Equilibrium maximizes member profits and CSR levels.

The model demonstrates effective CSR distribution over multiple periods.

Hierarchical game approach improves supply chain performance.

Abstract

In this paper, we establish a dynamic game to allocate CSR (Corporate Social Responsibility) to the members of a supply chain. We propose a model of a three-tier supply chain in a decentralized state which includes a supplier, a manufacturer and a retailer. For analyzing supply chain performance in decentralized state and the relationships between the members of the supply chain, we use a Stackelberg game and consider in this paper a hierarchical equilibrium solution for a two-level game. In particular, we formulate a model that crosses through multi-periods with the help of a dynamic discrete Stackelberg game. We obtain an equilibrium point at which both the profits of members and the level of CSR taken up by supply chains is maximized.