Pricing Models In Closed-Loop Supply Chain With Retailer Based Recycling

Under the background of promoting recycling economy, low carbon economy, and social sustainable development, the economical and environmental benefits of remanufacturing used products into new ones have been thought highly by scholars, enterprises and government.In this paper, we focus on a manufacturer and two competing retailers of the closed-loop supply chain, and research on the pricing of closed-loop supply chain with used products recycling by the two competing retailers. We firstly model three options as decentralized decision-making systems with the manufacturer being the Stackelberg leader, the two retailers being the Stackelberg leader, and Nash equilibrium game between the manufacturer and the retailers(i. e., no leader), then we concentrate on the centralized decision-making system when manufacturer and retailer cooperative pricing. At the same time, we also compare the results of the four models. The results show:(1)in decentralized decision-marking system, we find that in the market that no Stackelberg leader the retail price is the lowest, the recycling quantity of the whole system is the highest, and the profit of the whole system is also the highest, (2)compared with the decentralized decision-marking system, we find that in the centralized decision-making system the retail price is lower than no leader market's, the recycling quantity of the whole system is much higher, and the profit of the whole system is also much higher.