Supply Chain Emission Reduction Decisions, Considering Overconfidence under Conditions of Carbon Trading Price Volatility

To investigate the effects of carbon trading pricing and overconfidence on supply chain emission reduction decisions, this paper establishes a model consisting manufacturer retailer applies Stackelberg game model. The objective is to explore members’ decisions profits. study shows that prices can be good guide for low-cost manufacturers reduce emissions when are rational under policies. However, ability act as starts fail cost increases. When overconfident, causes increase rate their products In addition, effect increases in line with prices. face different costs, higher do not necessarily always generate benefits manufacturers. For overconfident manufacturers, however, detrimental, especially price Retailers tend choose work who less results gains retailer.