Profit Seeking versus Survival Seeking: Green Investment of Capital-Constrained Suppliers with Incentive Contracts

Table 2

Notations.

Notation	Explanation
i	Index of firms,
	Greenness level, a decision variable of the startup supplier
k	Unit cost of greenness improvement
	Wholesale price of the component determined by the startup supplier
p	Price of the final product as a decision variable of the downstream
A	Potential market size as a random variable, with and
b	Demand responsiveness to the manufacturer’s product greenness
	Proportion that the manufacturer shares its revenue to the supplier
	Proportion that the manufacturer shares to the supplier’s green investment
y	Survival threshold (minimum profit level) must be reached for the startup supplier
	Demand function of the manufacturer
	Profit of the manufacturer and the startup supplier