The Research On The Effect Of Financial Subsidies On The Closed-loop Supply Chain Game Models With Remanufacturing

With the Chinese Government actively dealing with the international financial crisis, expanding domestic demand, and satisfying the urgent need for environmental protection, it timely develops and implements the preferential policies that the government will give financial subsidies to customers who buy household appliances, automobiles and other trade-in products. Intuitively, when consumers buy these products they can directly access to the full range of financial subsidies, but in the actual end only get part of them. The decisive index to measure the effectiveness of policy implementation is what percentage of financial subsidies the consumers will ultimately get. How many transfer payment the manufacturers and retailers can get from the consumers depends on the power of both sides. In this paper, for the problem the author made some researches in the three different game-theory models under the manufacturer direct recovery mode and the mixed-recovery mode. And the models I established contains the direct manufacturer of variables and I deduced the optimal retail price obtained before and after the financial subsidies, the best wholesale price, the best recovery rate, the optimal profits, and the market equilibrium changing value of demand, etc. Through reasoning, verifying, and analyzing, I have the following inclusions: (1) in these two kinds of recovery mode, when in the Nash equilibrium state, the consumers will ultimately receive the largest proportion of financial subsidies, the maximum increased value of market demand and most apparent changes in trade-in product recovery, and the most profitable closed-loop supply chain as a whole. So it has the most obvious effect of financial subsidies and the maximum effectiveness of environmental protection; (2) In the market where there is already a leader: the leader who has the "first mover advantage" in price will share the largest proportion of government transfer payments, and consumers are the mediate, and the subordinate the smallest proportion, and the two player's trade-in product recovery rates are not compared with their statuses. Therefore, the values of this article is that I can make some progress to the government's policy, for the players in the closed-loop supply chain with different status, the government should implement different tax and price policies, so that maximize the total utility of financial subsidies.