Research Article

Green Supply Chain Decisions and Revenue-Sharing Contracts under Manufacturers’ Overconfidence

Table 1

List of the main notations

ParametersMeanings

Variable cost of manufacturing per unit
Green investment cost coefficient
The market size
Consumers’ sensitivity to retail price
Consumers’ sensitivity to product greenness
Overconfidence level of the manufacturer
The proportion of revenue sharing offered by the retailer
Decision variablesMeanings
Product greenness
Wholesale price per unit
Retail price per unit
Superscript/SubscriptMeanings
The manufacturer’s actual expected profit
The expected profit that the manufacturer deems he get
The retailer’s actual expected profit
The profit of the green supply chain
Equilibrium value without contracts
The case of revenue-sharing contracts
The overconfident manufacturer’s belief about parameters or variables
Equilibrium value with contracts