Game theory-based environmental LCC control behavior analysis

Abstract Environment life cycle cost (E-LCC) is rapidly becoming an important strategy for firms that deal with environmental issues. In this paper, the researchers use evolutionary game model to investigate how E-LCC control affects manufacturers’ decision-making behavior. Under different LCC control choices, three competition market structures are formulated. Individual benefits are also calculated. Using an equilibrium solution, the researchers analyzed the effects of consumer environmental awareness (CEA), market capacity, and conventional-LCC (C-LCC) efficiency on equilibrium decisions. Results suggest that CEA can promote E-LCC strategy. However, it is negatively associated with C-LCC efficient level and market capacity. These findings help firms and governments choose strategies and environmental policies, respectively.