Strengthening carbon regulations and competitive pressures are forcing supply chains to provide environmental (e-) products to replace traditional (t-) products. However, cap-and-trade policy allows manufacturers, the main carbon emission emitters, to trade their emission permits freely. Considering manufacturers' power and key role in producing and carbon trading, we develop a duopoly model consisting of two competing manufacturers. Despite asymmetrical carbon emission reduction efficiencies, the two manufacturers can independently and simultaneously decide their respective t-/e-products outputs, emission reduction levels, and permits trade quotas. The unique Nash equilibrium is derived with the overall cap. We find that the low-cost manufacturer uses its cost advantage to invest more in emission reduction, then sells the excess emission permits to its rival, but makes its rival more competitive in product market. Interestingly, our results show that cap-and-trade policy triggers an industry collusion in which manufacturers reduce competition and improve the power and profits by reducing overall output and adopting differentiated product strategy. Furthermore, the cost advantage and high product substitution can accelerate low-cost manufacturer's transformation but hinder high-cost manufacturers. The impacts of cap-and-trade policy on consumer surplus and social welfare are also discussed to provide guidance for policy makers.
29 November 2023 in European Journal of Operational Research
With the popularity and development of the platform economy, numerous enterprises are choosing to cooperate with e-commerce platforms to expand online market, and the cooperation modes have exhibited innovation and diversification. This paper focuses on a new platform-based co-opetitive supply chain whereby a flagship store operated by the manufacturer (MFS) and a self-run store operated by the platform (PSS) coexist in the platform market. The manufacturer acts as the platform’s upstream contract manufacturer and downstream competitor. We answer a key question that the manufacturers are facing: when should they adopt the high-level logistics service (HLS) provided by the platform? Two cases with exogenous and endogenous HLS charge are analyzed respectively. Our results show that under the case of exogenous HLS charge, the manufacturer should always select HLS when the HLS charge is low. Counterintuitively, if the product’s market potential is limited, the HLS is still profitable for the manufacturer despite a high HLS charge. When the HLS charge is endogenous, we find that the platform can adjust the HLS charge to induce the manufacturers to give up low-level logistics service (LLS) and choose HLS, which will achieve a win-win situation.
Purpose: Social media technology has changed donors' decision-making process in online philanthropy compared with traditional charity. How do IT affordances support donor perceptions and motivations in charitable crowdfunding? The purpose of this study is to explore how the five sub-dimensions of charitable crowdfunding IT affordances (i.e. visibility, association, meta-voicing, trading and security) afford initiators and platforms in motivating donors to support charitable crowdfunding projects.Design/methodology/approach: This paper uses a quantitative research approach. An online survey was conducted to collect research data from WeChat users who had experienced charitable crowdfunding. A sample of 344 valid responses were received and analyzed.Findings: The results show that four of the five IT affordances facilitate donors' perceptions (perceived emotions and trust) and motivations (intrinsic motivations and extrinsic motivations), and thereby increase behavioral intention on supporting charitable crowdfunding projects.Originality/value: This study advances the affordances and online charity literature by examining the antecedents and outcome of perceptions and motivations that determining behavioral intention in more detail. The authors’ findings not only benefit researchers in explaining how technology helps donors perceiving projects and motivating them to donate online, but also assists practitioners in developing better charitable crowdfunding management strategy.