Dynamic Game of the Dual-Channel Supply Chain Under a Carbon Subsidy Policy

Abstract: This study investigates the dynamic game behaviors of dual-channel supply chains involving an oligopoly manufacturer selling low-carbon products to online and offline retailers. The price game models under government subsidy are discussed under three scenarios: (1) simultaneous decision, (2) manufacturer dominates the market, and (3) retailer dominates the market. The equilibrium strategies are compared under the government subsidy policy. Using numerical simulation,complex characteristics of the dual-channel supply chain under the carbon subsidy policy are investigated. The complexity of wholesale price and sales commission of each channel are analyzed by bifurcation, largest Lyapunov exponent and basin of attraction diagrams. Furthermore,parameter adjustment and delayed feedback control methods are proven to be effective approaches to chaos control.