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Chinese Journal of Management Science ›› 2021, Vol. 29 ›› Issue (5): 97-107.doi: 10.16381/j.cnki.issn1003-207x.2020.0098

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Research on A Two-period Supply Chain Recycling Pricing Model Considering Consumer Behavior in A Two-sided Network Environment

ZHU Xiao-dong1, LI Wei2   

  1. 1. School of Management Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China;
    2. ChangWang School of Honors, Nanjing University of Information Science and Technology, Nanjing 210044, China
  • Received:2020-01-08 Revised:2020-02-25 Online:2021-05-20 Published:2021-05-26

Abstract: Closed-loop supply chain management has been an effective way to improve the economic and environmental benefits and has become a core solution of product recycling system. A closed-loop supply chain model including manufacturers, consumers and the third-party recycling platform is considered, building a complete monopoly two-sided platform in a two-period dynamic game. Based on the model, the optimal recycling prices and profits of the decentralized and centralized decision model are analyzed and compared respectively. Pareto improvement is also lived through revenue sharing contract. Finally, a numerical simulationisused to analyze the impact of remanufacturing proportion and profit contribution rate of users on the profits, which verifies the effectiveness of the contract. Overall, the results show that decentralized decision will lead to loss of profits of closed-loop supply chain, while the profit of the whole closed-loop supply chain is optimal under the centralized decision. By subsidizing consumers,the third-party recycling platform effectively increases the recycling efficiency. The recycling rate and consumers' awareness of recycling are also raised by this way.Additionally, each participant is motivated to implement the revenue sharing contract due to its mutual benefits, which increases the profit of each party. Consequently, the overall profit of the closed-loop supply chain increases as well.

Key words: closed-loop supply chain, two-sided markets, network externality, consumer behavior, stackelberg game

CLC Number: