Abstract: The rapid development of technology makes the product life cycle shorter and shorter, and replacement more accelerate. Thus, the recycling of waste products has become the focus of society and enterprises. The government adopts the subsidy strategy in order to promote the recycling of waste products, and it could participate in the recycling of waste products through two subsidy strategies, one is to subsidize recyclers, and the other is to subsidize processors. In the recycling process of waste products, there are two common modes, one is single-channel recycling, and the other is dual-channel recycling. In order to analyze the impact of different government subsidy strategies on the two recycling models and establish the optimal subsidy model,the single/double channel recycling game model isconstructed. Basing the game model, the influence of government subsidies on the recycling channel decision variables, recycling quantity and income is comparably analyzed, and the optimal recycling mode boundary conditions is established. The main research results are as follows: the different subsidy targets of government does not affect the amount of waste product recycling when it is the single channel recycling; government giving subsidies to the processors is optimal when it is the dual channel recycling; whether it is single-channel or dual-channel recycling, the processors could get government subsidy through reduce the unit price of waste product entrusted; when the government subsidy amount is greater than a certain threshold, the single-channel recycling mode is better than the dual-channel recycling mode, conversely, the dual-channel recycling is optimal.

Key words: government subsidy; single channel recycling; dual channel recycling; game theory