USING GAME THEORY FOR MODELING OF GREEN SUPPLY CHAIN STRATEGIES WITH GOVERNMENT DECISION MAKING; 3-PLAYER MODEL

In this study, a new dynamic game model with perfect and complete information has designed for strategies of main players (government, manufacturer and costumer) in order to select of green supply chain path by using game theory. At first, a general conceptual definition for different regions of green supply chain has presented and shown the effects of motion of each level to other level on incomes and costs. Then, main variables and parameters have described and the games and their pay-off functions of players modeled in strategic form and three-dimensional matrix. In order to make the model more efficient, the decision making variables and the parameters of pay-off functions of players are formulated in a more practical and more detailed through which the outcomes of pay-off functions will be more accurate. The pay-off function of players is formulated for each combination of games and each player independently. Then, the different results of players' pay-off and the impact of them on selection of strategies (games) have analyzed. In addition, it has been found that how the games of other players affects each other strategies and their decisions. The Nash Equilibrium has considered as a problem solving methodology, which it determines the optimal games to maximize pay-off function of players .In addition, it has shown that the best games are selected among optimal games by using of the Nash Equilibrium backward Induction. In the following, in order to test the model, a numeral analysis has applied. After problem modeling and solving, its results show that in this new 3-player model, logging customers to the model makes it more effective than the previous models, and the pay-off functions of players (especially government and manufacturers) are more economical. In the end of this study, the conclusion and some suggestions about future study are presented