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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (2): 242-247.doi: 10.16381/j.cnki.issn1003-207x.2021.0940

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The Impact of Consumer Expected Regret on the Low-carbon Strategy Choices of Enterprises

Yi Ye1,2, Qiang Guo1, Jiajia Nie1()   

  1. 1.School of Economics & Management,Southwest Jiaotong University,Chengdu 610031,China
    2.Service Science and Innovation Key Laboratory of Sichuan Province,Southwest Jiaotong University,Chengdu 610031,China
  • Received:2021-05-12 Revised:2021-08-11 Online:2025-02-25 Published:2025-03-06
  • Contact: Jiajia Nie E-mail:nie_jia@126.com

Abstract:

Considering the factors of consumer expected regret, the low-carbon strategies of two companies in a competitive market when selling differentiated products are investigated. By constructing game models under four different strategies, the changes in market equilibrium strategies with and without expected regret, and the impact of expected regret on equilibrium solutions are analyzed. The results indicate that when consumers have a higher probability of obtaining additional utility from different attributes of the product, both parties tend to adopt low-carbon product strategies. However, this may lead to a prisoner's dilemma for both companies, and expected regret factors promotes companies to choose low-carbon product strategies, increasing the likelihood of companies falling into a prisoner's dilemma. In addition, when companies adopt low-carbon strategies, the impact of expected regret factors depends on the probability of consumers obtaining additional utility from different attributes of the product. When the probability is low, expected regret factors has a negative impact on the company's profits, and vice versa has a positive impact.

Key words: expect regret, competitive market, low carbon technology, equilibrium strategy

CLC Number: