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Designing Coordinating Contracts for the Consignment Channel: Integrating Manufacturer-Greening and RetailerMarketing Efforts

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In this paper, we study the sustainable coordination of a consignment channel that arises due to simultaneous consideration of Greening and Marketing initiatives undertaken by channel agents. We investigate a green channel where the manufacturer (M) is responsible for greening and the retailer (R) undertakes marketing efforts. Therefore, the market demand is affected by retail price, R’s marketing and M’s greening efforts. Using M-led Stackelberg game to model the decision-making of the two firms in the channel, we analyze the decentralized channel under our four proposed sharing contracts. |