View in EDS

Strategic pricing and investment in environmental quality by an incumbent facing a greenwasher entrant.

Saved in:
Bibliographic Details
Title: Strategic pricing and investment in environmental quality by an incumbent facing a greenwasher entrant.
Authors: Cetin, Can Baris1 (AUTHOR) can-baris.cetin@hec.ca, Mukherjee, Arka2 (AUTHOR) mukherjeea2@macewan.ca, Zaccour, Georges1 (AUTHOR) georges.zaccour@gerad.ca
Source: Annals of Operations Research. Jan2026, Vol. 356 Issue 2/3, p757-784. 28p.
Subjects: Environmental quality, Consumer behavior, False advertising, Price wars, Monopolies, Investment policy, Market design & structure (Economics)
Abstract: We examine how greenwashing affects the strategies and outcomes of companies and consumers. We develop a two-stage game, where a monopolist sets price and invests in environmental quality in the first stage, and competes with a new entrant in the second stage. The incumbent company is genuinely environmentally friendly, while the new entrant may use deceptive green marketing. We assume that only inexperienced consumers can be influenced by greenwashing, and consider two important dynamic factors, i.e., a change in competitive structure and a learning effect in the market. We investigate the conditions under which greenwashing is profitable for the new entrant, the ways in which the incumbent company responds to it, and the impact of greenwashing on the environment and consumers. We find that greenwashing can be mutually beneficial for both firms thanks to higher market potential and the incumbent's first-period actions. Customers always suffer from greenwashing, and in rare cases, greenwashing can be beneficial to enhance environmental quality. [ABSTRACT FROM AUTHOR]
Copyright of Annals of Operations Research is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
FullText Text:
  Availability: 0
Header DbId: egs
DbLabel: Engineering Source
An: 190958623
AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
IllustrationInfo
Items – Name: Title
  Label: Title
  Group: Ti
  Data: Strategic pricing and investment in environmental quality by an incumbent facing a greenwasher entrant.
– Name: Author
  Label: Authors
  Group: Au
  Data: <searchLink fieldCode="AR" term="%22Cetin%2C+Can+Baris%22">Cetin, Can Baris</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> can-baris.cetin@hec.ca</i><br /><searchLink fieldCode="AR" term="%22Mukherjee%2C+Arka%22">Mukherjee, Arka</searchLink><relatesTo>2</relatesTo> (AUTHOR)<i> mukherjeea2@macewan.ca</i><br /><searchLink fieldCode="AR" term="%22Zaccour%2C+Georges%22">Zaccour, Georges</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> georges.zaccour@gerad.ca</i>
– Name: TitleSource
  Label: Source
  Group: Src
  Data: <searchLink fieldCode="JN" term="%22Annals+of+Operations+Research%22">Annals of Operations Research</searchLink>. Jan2026, Vol. 356 Issue 2/3, p757-784. 28p.
– Name: Subject
  Label: Subjects
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Environmental+quality%22">Environmental quality</searchLink><br /><searchLink fieldCode="DE" term="%22Consumer+behavior%22">Consumer behavior</searchLink><br /><searchLink fieldCode="DE" term="%22False+advertising%22">False advertising</searchLink><br /><searchLink fieldCode="DE" term="%22Price+wars%22">Price wars</searchLink><br /><searchLink fieldCode="DE" term="%22Monopolies%22">Monopolies</searchLink><br /><searchLink fieldCode="DE" term="%22Investment+policy%22">Investment policy</searchLink><br /><searchLink fieldCode="DE" term="%22Market+design+%26+structure+%28Economics%29%22">Market design & structure (Economics)</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: We examine how greenwashing affects the strategies and outcomes of companies and consumers. We develop a two-stage game, where a monopolist sets price and invests in environmental quality in the first stage, and competes with a new entrant in the second stage. The incumbent company is genuinely environmentally friendly, while the new entrant may use deceptive green marketing. We assume that only inexperienced consumers can be influenced by greenwashing, and consider two important dynamic factors, i.e., a change in competitive structure and a learning effect in the market. We investigate the conditions under which greenwashing is profitable for the new entrant, the ways in which the incumbent company responds to it, and the impact of greenwashing on the environment and consumers. We find that greenwashing can be mutually beneficial for both firms thanks to higher market potential and the incumbent's first-period actions. Customers always suffer from greenwashing, and in rare cases, greenwashing can be beneficial to enhance environmental quality. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Annals of Operations Research is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=egs&AN=190958623
RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.1007/s10479-025-06926-9
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 28
        StartPage: 757
    Subjects:
      – SubjectFull: Environmental quality
        Type: general
      – SubjectFull: Consumer behavior
        Type: general
      – SubjectFull: False advertising
        Type: general
      – SubjectFull: Price wars
        Type: general
      – SubjectFull: Monopolies
        Type: general
      – SubjectFull: Investment policy
        Type: general
      – SubjectFull: Market design & structure (Economics)
        Type: general
    Titles:
      – TitleFull: Strategic pricing and investment in environmental quality by an incumbent facing a greenwasher entrant.
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: Cetin, Can Baris
      – PersonEntity:
          Name:
            NameFull: Mukherjee, Arka
      – PersonEntity:
          Name:
            NameFull: Zaccour, Georges
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 15
              M: 01
              Text: Jan2026
              Type: published
              Y: 2026
          Identifiers:
            – Type: issn-print
              Value: 02545330
          Numbering:
            – Type: volume
              Value: 356
            – Type: issue
              Value: 2/3
          Titles:
            – TitleFull: Annals of Operations Research
              Type: main
ResultId 1