Research Of Closed-loop Supply Chain Policy Considering Free Riding Behavior Under Different Authority Structure

In recent years,governments have begun to focus on the parallel development of economy and environmental protection.How to efficiently utilize waste resources and materials to achieve double harvest of economic and environmental benefits has become the attention of all researchers.As we all know,China is a country which has serious shortage of resources,and the per capita share of resources has always been lower than the average level in the world.Therefore,the theory of closed-loop supply chain management which can maximize the development and recovery of waste products has gradually developed and improved.At the same time,the rapid development of Internet and e-commerce has spawned a new way of consumption,more and more manufacturers and retailers(such as Su-Ning,Yong-hui supermarket,Hua-run department store)sales products both in the network and Traditional marketing channels.It is obvious that opening two channels at the same time will help the enterprises to serve customers effectively and improve their satisfaction and loyalty.This also makes the phenomenon about online experience and offline purchase increasing rapidly.At this time,Consumer Free Riding Behavior came into being.The emergence of this behavior not only affects the decision-making behavior of the members in the closed loop supply chain,but also has a significant impact on the whole supply chain system.However,the literature about these two parts are basically blank.Based on the above,this paper traced and combed Consumer Free Riding Behavior theory,closed loop supply chain concept,channel selection,and pricing decision under different power structure.This article,which aims at the closed-loop supply chain system composed of the single manufacturers and retailers,basing on game theory by constructing the decision models of centralized decision,manufacture Stackelberg,retailer Stackelberg game and manufacture-retailer Nash Equilibrium respectively.the closed-loop supply chain system of single manufacturer and retailer,the method of game theory based on the construction of centralized leadership,manufacturer Stackelberg game,retailer Stackelberg market,manufacturers and retailers in closed loop supply chain decision model Nash game mode,discussed the consumer maker of network sales model and sales network of retailers under the mode of free riding behavior of different power structure of dual channel closed-loop supply chain decision and profit impact problems.This article also concentrate onanswer correlation of the sales price,the market demand,and the size of profits for the members of the relationship to find the effect to the dual channel closed-loop supply chain and the method to achieve economic benefits and environmental benefits.The research shows that: in the two sales mode,the total profit of the centralized-decision closed-loop supply chain and the profit of authorities under the decentralized-decision of the Stackelberg game leading by manufacturer are influenced by the free-riding coefficient.The price of direct channel and market requirement increase with the increase of free riding coefficient in all condition.For the whole closed loop supply chain system,the subject of right gets the maximum profit when it leads the model under the decentralized decision.For consumers,the profit of the system reaches the peak under the centralized decision.Therefore,the governments and the policymakers should focus on promoting recycling and increasing the profit of the system by choosing the authority structure reasonably,controlling the free riding coefficient and adjusting the sales price and demand of double-channel.The prices are equal between all kinds of network marketing under the influence of free riding behavior in the decentralized decision.Therefore,the governments and the policymakers should focus on choosing the authority structure reasonably,and making strategy to guarantee the economic and environmental benefits of the supply chain system and the members.Finally,the future research prospect gives in the light of the current research progress and the actual market situation,in order to provide follow-up reference and reference for the scholars.