Game Analyzing For Remanufacturing Model Under Government Subsidy And WTP Differentiation

Remanufacturing not only can optimize the allocation of resources, save energy,reduce costs, but also can promote the sustainable development of society, achieve thecomprehensive benefits of "the environment and the economy". It’s important forgovernment to determine whether adopt a incentive regulation measures for enterpriseswho access the market early. It’s also important for manufacturers to selectremanufacturing model under the government’s incentive regulation measures andconsumers’ WTP(Willingness to Pay) differentiation.Firstly, based on the analysis of status quo of remanufacturing industry and ourgovernment’s incentive regulation, combining the existing research results, this paperestablished CSR (Corporate Social Responsibility) evaluation index system from fiveaspects, economic responsibility, legal responsibility, moral responsibility,environmental responsibility and philanthropic responsibility. The purpose of thisevaluation index system is for government to determine whether adopt a regulatorymeasures for enterprises.Secondly, divided the development of manufacturing industry into three stages,germination, growth and maturity period, under this situation government will adoptdifferent measures for each period, subsidies, subsidies or charges and taxes. Then,considered the government’s incentive regulation measures and consumers’ WTPdifferentiation, this paper constructed12different Dynamic game models depend on thegovernment’s different incentive target. And use backward induction method to solveand analyze the different models, to find out the optimal decision of every developmentperiodFinally, this paper used specific examples to support this research. The results showthat government can use and reference this CSR evaluation system in specific case, At thesame time, this example also corroborated the correctness of the results for game analysisunder government’s incentive regulation measures and consumers’ WTP differentiationof three development period.