Abstract: Considering the relationship of quality level,quantity constrained,and consumers with heterogeneous price sensitivity,and based on the two stages dynamic game model,we use a single cost function class to study the price and quality competition between the manufacturer and remanufacturer under free recycling model in the closed-loop supply chain.The results indicate that when the remanufacturerd product enters the market at the same,the manufacturer has the largest profit in the event of the largest quality gap.We obtain the sufficient condition under which the remanufacturer has a lower limit equilibrium profit.

Key words: dynamic game, closed-loop supply chain, price competition, quality competition