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Price Competition and the Choice of Green Degree Considering Consumer Environmental Awareness

For one homogenous product, there always exists different manufactures with different green levels. Their competition deeply depends on consumers' Willingness To Pay (WTP for short), their own technical parameters and related costs. In this paper, we consider two manufactures with different green levels. Differentia of Willingness To Pay (DWTP) as a modified parameter and technical parameters are taken into account. Optimal green levels and price are given by our model. All the possible equilibrium states are also derived. Those results deeply rely on DWTP and technical parameters. As an extended result, government's intervention way is given for each scenarios.