Abstract: With the increase of customers’ environmental awareness and the intensification of market competition, the right sales decisions are significantly important for any green product enterprises to enter, occupy, consolidate and expand their markets. For this, a supply chain system consisting of one traditional manufacturer, one green manufacturer and one retailer is developed. Depending on the channel powers of two manufacturers in the system, three supply chain game models, i.e., traditional-manufacturer-leader Stackelberg game model, green-manufacturer-leader Stackelberg game model and Nash game model between both manufacturers, are considered. How the different channel power structures and the consumers’ green preference affect the decisions of wholesale prices, retail prices, order quantities, green input and supply chain profits is mainly investigated in this study. Furthermore, a cost-sharing and two-part-tariff contract is proposed to coordinate such a supply chain, and the Pareto improvement condition for each supply chain member’s profit is given.

Key words: green supply chain；game theory；channel power；consumers’ green preference； coordination