Game Analysis Of The WEEE Remanufacturing Mode With Different Financial Subsides

As a new category in the solid waste, Waste Electrical and Electronic Equipment (WEEE) is the fastest-growing waste in the world. Containing excessive amounts of heavy metals, WEEE without disposal brings to environmental pollution and a waste of resources. How to properly handle the remanufacturing problems of WEEE has become the focus of domestic and foreign scholars, in order to reduce the pollution to the environment and improve the resource utilization rate. In this thesis, the self-constructing remanufacturing models and the outsourcing remanufacturing model are analyzed and discussed with the different financial subsidies by the game method.Firstly, the self-constructing model and the outsourcing model with no financial subsidies are analyzed by game theory. According to the benefit-driven rule, profit functions of each members are established, which are solved and analyzed in Stackelberg game framework. The wholesale price, retail price, price paid for consumer, price paid for retailers, the profit of each subjects and the whole supply chain profit are inferred, the critical outsourcing costs are calculated.Secondly, taking into account the effect of financial subsidies on the remanufacturing models of WEEE, four models are analyzed by game method, which are the self-constructing model with subsidies to retailers, the self-constructing model with subsidies to remanufacturers, the outsourcing model with subsidies to retailers, the outsourcing model with subsidies to remanufacturers. According to the equilibrium solution, the effect with the different financial subsidies is analyzed,and the critical outsourcing costs in each models are calculated.Some proposal about remanufacture model decision is given to manufacturers. Suggestions are presented to government on how to set up effective incentive mechanism in order to encourage remanufacture of WEEE. To the whole society, this research is significant for building sustainable development society and developing circular economy.