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| Research on Green Product Market Entry and Competitive Firms Pricing Strategies Based on Consumer’s Social Comparison Behavior |
| QU You，GUAN Zhimin，LIU Lu，JIANG Liwen |
| 1. Shandong University of Science and Technology, Qingdao, Shandong, China; 2. Northeastern University, Shenyang, China |
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Abstract Considering the “social attributes” of human beings and the “symbolic value” of green product, this study establish a consumer utility function based on social comparison behavior for the problem of market entry of green products and pricing strategies of two competitive firms, and the effects of the degree of social comparison on the equilibrium results and environment are investigated by constructing a Stackelberg game model led by traditional manufacturers. The results show that the higher the social comparison degree, the higher the possibility of green product market entry, and the traditional manufacturer is more likely to adopt high pricing strategies to plunder the surplus value of ordinary consumers maximally. Besides, it is found that, counterintuitive, providing the green product into the market is not always beneficial to the environment, in certain situations, market entry of green product can increase the environmental stresses instead.
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Received: 28 May 2021
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