Optimizing greenness and pricing in green product development: addressing cannibalization and enhancing market share in a duopoly markets
Environment, Development and Sustainability, ISSN: 1573-2975
2024
- 20Captures
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Metrics Details
- Captures20
- Readers20
- 20
Article Description
This study explores the optimization of green product development (GPD) strategies within a duopoly market, focusing on the competition-cannibalization trade-off. In a duopoly market, firms face competitive pressures that necessitate innovation and differentiation, thus providing a unique context to explore the balance between sustainability and profitability. Employing a game-theoretic model, we analyze the strategic interactions between two dominant firms. We introduce a cannibalization index and market share index to evaluate the trade-offs between the economic benefits of green products and the potential erosion of existing product sales. Our findings reveal that consumer environmental awareness significantly impacts optimal pricing and greenness levels, yet also amplifies cannibalization risks due to higher production costs. Sensitivity analyses identify optimal greenness levels that balance market share and profitability, noting that excessively high greenness can be counterproductive. This research provides a breakthrough by offering nuanced insights into the competition-cannibalization trade-off in GPD. Managers and policymakers will benefit from these findings by gaining a deeper understanding of how to strategically position green products to maximize both market share and environmental impact.
Bibliographic Details
Springer Science and Business Media LLC
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