How green advertising and power structures affect competition between green and non‐green manufacturers?

Abstract

Considering scenarios with and without green advertising, we compare the optimal solutions and performance of both green and non‐green manufacturers under three power structures. Green manufacturers who invest in green advertising experience enhanced output and profits, with the highest level of green advertising and profit improvement when they dominate market. In most cases, green advertising investment tends to decrease the output and profits of non‐green manufacturers. However, under specific circumstances, such as when non‐green manufacturers dominate market and the production cost of green products exceeds a certain threshold, investing in green advertising can unexpectedly stimulate demand for non‐green products.