The present research investigates the competition between two products without packaging and with green-packaging in a dual-channel supply-chain with government intervention. The manufacturer supplies the product to the customers at the first level without packaging, and the packaging-company supplies it at the second level with green-packaging. The profits made by the supply-chain members have been calculated under the two government policies for identification of the optimal decisions. The results indicate that the low cost of green-packaging is to the benefit of the packaging-company in both government policies, which is the case for the manufacturer only in the second. It has also been demonstrated that the difference between the sales prices of the two products increases, and the competition between them decreases with an increase in the difference between the customers’ conceptions of their values.
