A dynamic Stackelberg game for green supply chain management

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.