Abstract: To investigate the impact of competition among collection channels and sale channels on the decision-makings of closed-loop supply chain (CLSC) members and the optimal government regulations for this CLSC, decision models for electrical and electronic equipment CLSC with hybrid sale/collection channels under government regulations were developed. Based on game analysis method, the optimal parameters for government regulation, optimal decisions and profits of CLSC members, social welfare and consumer surplus were obtained. The results show that the higher the fee levied for WEEE disposal, the higher the wholesale price, the direct selling price and distribution price; the higher the subsidy for WEEE recycling, the higher the collection price and collection amount of WEEE. With the increase of consumer environmental consciousness and sensitivity to WEEE collection price, the collection amount of WEEE, the profits of CLSC members, social welfare and consumer surplus will increase. A numerical example in computer industry was taken to investigate the impact of customer sensitivity on the gap between direct selling price and distribution price. It is found that an increase in customer sensitivity would decrease the profits of manufacturer and retailer, social welfare and customer surplus, but it has no influence on the profits of third-party collector and recycler. The main contributions of this paper are as follows: first, decision models are devoloped for CLSC with hybrid sale/collection channels and the optimal government regulations are deduced for this CLSC, as well as the influence of government regulations on the decisions of CLSC members; second, a new way is provided to calculate customer surplus under hybrid sale/collection channels based on the classical definition of customer surplus.

Key words: WEEE, closed-loop supply chain, sales channel, collection channel, government regulations