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XianshengHuang_02922200_2024.pdf
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- In today's society, there is a growing emphasis on sustainable living, with consumers showing a preference for environmentally-friendly products over conventional items. This trend has prompted businesses to offer green products as alternatives to traditional options. However, the profitability of green firms remains uncertain, with some relying on government subsidies. This study constructs a model to simulate the market dynamics of green and non-green firms, examining how consumer preferences impact their profitability. By analyzing different consumer preferences and pricing strategies, we explore the conditions under which green firms can achieve and sustain profitability compared to non-green firms.