Research On Pricing Strategies Of Dual Channel Recycling Considering Participants’ Behavior

In recent years, sustainable development and recycling economy cause great attention all over the world. At the same time, the closed-loop supply chain has become an important topic in academic circles. With development of closed-loop supply chain, multiple channel recycling models in remanufacturing production operation have become very common. Recycling channel of closed loop supply chain cause more attention, so the pricing strategy of dual channel recycling has a value of wider practical application.On the other hand, the study found that participants are not fully rational in the supply chain. Some human behavior factors such as the degree of bargaining, risk avoidance and fairness concerns make the traditional operational research theory cannot be used in the supply chain directly. Participants’ behavior on the system operation and optimal strategy has become an important topic in academic circles. Therefore, the research of closed-loop supply chain management with behavioral science and pricing strategies considering participants’ behavior has a practical significance.On the basis of analyzing the current status and development of pricing strategy of closed-loop supply chains, this paper is to study recovery pricing strategy of closed loop supply chains considering participants’behavior. This paper completes the following aspects:(1) Pricing mechanisms and coordination strategies of dual channel recycling with bargaining power. In this dual channel recycling model, product recycling of the closed-loop supply chain is led by the remanufacturer and third-party recycler. In addition, pricing mechanisms and coordination strategies are analyzed under decentralized decision and centralized decision with the method of game theory. Based on Rubinstein bargaining model and discount factor theory, coordination strategy and Pareto improvement are established. Finally, a numerical analysis is given to illustrate the effectiveness of the pricing mechanisms and coordination strategies.(2) Pricing strategies of dual channel recycling with channel competition and risk-averse participants. In this dual channel recycling model, product recycling of the closed-loop supply chain is led by the retailer and third-party recycler, and the channel competition and risk-averse participants are incorporated. In addition, pricing mechanisms are analyzed under decentralized decision and centralized decision with the method of game theory. Finally, a numerical analysis is given to discuss the effect of risk-averse on the recovery prices and benefits.(3) Pricing strategies of dual channel recycling with participants’fairness concerns. In this dual channel recycling model, product recycling of the closed-loop supply chain is led by the manufacturer and retailer. The fairness concerns are incorporated with the method of game theory. Four pricing models are constructed under different conditions:neither participants are concerned about fairness, only the manufacturer is concerned about fairness, only the retailer is concerned about fairness, both participants are concerned about fairness. Then, a numerical analysis is given to discuss the effect of fairness on the recovery prices and benefits.Finally, this paper summarizes the main findings and conclusions, limitations of the study and the research for future study.