OPM/
Wir freuen uns sehr Prof. Dr. Selçuk Karabati, Koç University, Turkey, auf Einladung von Herrn Prof. Dr. Raik Stolletz, im Rahmen des CDSB-Seminars begrüßen zu dürfen.
Herr Prof. Dr. Selçuk Karabati, Koç University, Turkey wird einen Vortrag zum Thema " Sustainable Product Line Design and Pricing Under Regulatory Incentives” halten.
Der Vortrag findet am Mittwoch, den 25.02., von 12:30 bis 13:30 Uhr im Raum O 148 statt.
Abstract
Growing sustainability concerns and regulatory pressures are increasingly shaping firms’ product line decisions. In response, many firms introduce environmentally friendly (“green”) products alongside conventional alternatives. While such products are designed to reduce environmental impacts across the product life cycle, their realized environmental performance may depend critically on consumer behavior during the use phase. Differences in consumers’ environmental awareness and use-phase efficiency can influence both demand for green products and their actual environmental outcomes.
We examine a firm’s product line design and pricing problem in a heterogeneous market where consumers differ in their environmental awareness and willingness to pay for the environmental attributes of green products. We develop a mathematical optimization framework that integrates a utility-based consumer choice model with regulatory incentives linked to product environmental performance. The parameters of the consumer demand model are empirically validated through an experiment that investigates how product greenness and environmental awareness affect consumers’ willingness to pay.
We then analyze the firm’s optimal decisions regarding product greenness and pricing when both regular and green products are offered. The model is extended to incorporate a regulatory agency’s incentive design problem aimed at achieving a specified environmental performance improvement while minimizing incentive costs. Computational analyses illustrate how market segmentation, consumer awareness, production costs, and regulatory incentives jointly influence optimal product design, pricing strategies, and environmental outcomes. The results provide insights for both firms and policymakers seeking to balance profitability with environmental sustainability in product line decisions.
Speaker Bio
Selçuk Karabatı is a Professor of Operations Management at the College of Administrative Sciences and Economics at Koç University. He received his Ph.D. in Operations Management from the University of Texas at Austin and holds an M.S. in Industrial and Systems Engineering from the University of Southern California and a B.S. in Industrial Engineering from Boğaziçi University, İstanbul. His research focuses on retail operations management, sustainable operations management, supply chain management, and design and planning problems in production systems. At Koç University, he teaches courses in Service Operations Management, Operations Strategy, and Sustainable Operations Management.