This study considers a supply chain consisting of a dominant brand-name retailer and a manufacturer in the presence of a cap-and-trade mechanism and consumers’ low-carbon preference. The retailer exerts advertising efforts, while lacks of the manufacturer’s private carbon emission reduction effort cost information. We construct the benchmark model with information symmetry and asymmetry respectively. We obtain all members’ equilibrium solutions and analytically examine the impact of the manufacturer’s carbon emission reduction effort cost, the retailer’s advertising effort cost, and consumers’ low-carbon preference on the supply chain members’ decisions. And then, we systematically compare two scenarios to obtain the condition in which the manufacturer would be willing to share the private information. With the aim of improving the manufacturer’s carbon emission reduction effort level and all members’ economic performance, we further propose a two-part tariff contract for information symmetry and asymmetry, respectively.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.