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Role of trust-building in online recycling platforms

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  • Huang, Yanting
  • Liang, Yuqing
  • Gong, Yeming
  • Yuan, Zhe

Abstract

Many studies have addressed the research questions in online platforms and the collection of waste electric and electronic equipment. However, they may ignore the effect of trust-building in the online platform and how trust affects the optimal strategy in the recycling platform. Consumers must consider the price and credibility in the product recycling process due to the differentiated prices for the same products set by different online platforms. This work studies the profit of recyclers and platforms with a degree of trust-building in the reverse logistics system considering the following scenarios: online recycling platform builds trust or not under centralized and decentralized models. The results show that trust-building can effectively make more revenue for the system of the online recycling platform with enhanced demand if the cost of the trust-building construction is relatively low, especially in the centralized model. The revenue-sharing contract is more profitable than the cost-sharing contract but fails to achieve optimization in the integrated setting. We find a new decision support tool for optimal strategies under different decision-making models. This work helps the recycling platform improve mechanism design and make optimal decisions considering trust-building.

Suggested Citation

  • Huang, Yanting & Liang, Yuqing & Gong, Yeming & Yuan, Zhe, 2023. "Role of trust-building in online recycling platforms," International Journal of Production Economics, Elsevier, vol. 263(C).
    • Handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323001949
    DOI: 10.1016/j.ijpe.2023.108962
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