The Double-Source Purchase Decisions with Substitution Under Cap and Trade Policy

DOI

10.2991/amsm-16.2016.20How to use a DOI?

Keywords

substitution;double-source purchase;cap-and-trade policy

Abstract

Under carbon cap-and-trade policies, double-source purchase policy of two substitutable products by a monopoly retailer is studied, obtaining optimal purchase decision and optimal pricing decision of retailers. Firstly, optimal decisions of retailers under carbon-free constraints and carbon cap-and-trade policies are analyzed. Then, the influences of carbon trade price, initial carbon quota, carbon emissionand the substitutability between two products on retailer optimal decisionunder carbon constraints are discussed. Finally, compared with the case under carbon-free constraints, the influences of carbon cap-and-trade policies on optimal decision are analyzed. The conclusion in this paper provides theoretical supports for retailer multi-source purchase strategies.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yi Zheng
AU  - Xianli Zhao
PY  - 2016/05
DA  - 2016/05
TI  - The Double-Source Purchase Decisions with Substitution Under Cap and Trade Policy
BT  - Proceedings of the 2016 International Conference on Applied Mathematics, Simulation and Modelling
PB  - Atlantis Press
SP  - 83
EP  - 87
SN  - 2352-538X
UR  - https://doi.org/10.2991/amsm-16.2016.20
DO  - 10.2991/amsm-16.2016.20
ID  - Zheng2016/05
ER  -