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Reverse channel design with a dominant retailer and upstream competition in emerging markets: Retailer- or manufacturer- collection?

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  • Wang, Junbin
  • Zhang, Ting
  • Fan, Xiaojun

Abstract

By considering different regulations on retailers’ recycle responsibly (the retailers in emerging markets are “encouraged” to collect used products while those in developed markets are “required” to do so), we study a dominant retailer’s collection decision under upstream competition. The equilibrium collection model and effort are derived under different regulations. We find that the lenient regulation in the emerging markets is more likely to induce a socially inefficient equilibrium, and the strict regulation in the developed market induces a socially efficient equilibrium. The results suggest that the policymaker should motive the retailer to undertake more collection responsibility when the intensity of upstream competition is not too low.

Suggested Citation

  • Wang, Junbin & Zhang, Ting & Fan, Xiaojun, 2020. "Reverse channel design with a dominant retailer and upstream competition in emerging markets: Retailer- or manufacturer- collection?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:transe:v:137:y:2020:i:c:s1366554519310130
    DOI: 10.1016/j.tre.2020.101924
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    15. Prajapati, Dhirendra & Pratap, Saurabh & Zhang, Mengdi & Lakshay, & Huang, George Q., 2022. "Sustainable forward-reverse logistics for multi-product delivery and pickup in B2C E-commerce towards the circular economy," International Journal of Production Economics, Elsevier, vol. 253(C).
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    18. Suvadarshini, Pinakhi & Biswas, Indranil & Srivastava, Samir K., 2023. "Impact of reverse channel competition, individual rationality, and information asymmetry on multi-channel closed-loop supply chain design," International Journal of Production Economics, Elsevier, vol. 259(C).

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