We consider behavioral issues in a new dynamic model in which a manufacturer (M) makes pricing and green investment decisions while facing heterogeneous customers including emotional, conscious, and rational consumers. Emotional consumers base their purchasing decisions on M’s green...

This paper investigates two coordination mechanisms in a simple distribution channel: 1) the manufacturer's suggested retail price (MSRP) and 2) the minimum advertised price (MAP). With a MSRP, the retailer can engage in a price discount policy to maintain control of the selling price. With a...