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Decision-Making of a Dual-Channel Closed-Loop Supply Chain in the Context Government Policy: A Dynamic Game Theory

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  • Xuemei Zhang
  • Qianwen Li
  • Guohu Qi

Abstract

To analyze the effect of government reward-penalty policies (RPPs) on the decisions of a dual-channel closed-loop supply chain (CLSC), this paper endogenizes government decision variables to maximize social welfare and builds four decision-making models (without RPP, with carbon emission RPP, with recycling amount RPP, and with double RPP) by using a Stackelberg dynamic game between the government and supply chain members. The research results show that, (1) in the four models, there exist optimal prices and reward-penalty coefficients to maximize the supply chain members’ profits and social welfare. (2) Comparing with model , under most conditions, three government RPPs decrease the demand for new products and increase the demand for remanufactured products. Comparing the case without RPP, R ’s profit decreases, and when the carbon emission cap is very big and the lowest recycling amount is very small, M ’s profit increases. (3) In most cases, the three government RPPs can effectively control the total carbon emission and increase the social welfare, but they damage the benefits of retailers and consumers. With the increase of the carbon emission intensity of remanufactured products, the government can implement the double RPP, the carbon emission RPP, and the recycling amount RPP in turn.

Suggested Citation

  • Xuemei Zhang & Qianwen Li & Guohu Qi, 2020. "Decision-Making of a Dual-Channel Closed-Loop Supply Chain in the Context Government Policy: A Dynamic Game Theory," Discrete Dynamics in Nature and Society, Hindawi, vol. 2020, pages 1-19, May.
  • Handle: RePEc:hin:jnddns:2313698
    DOI: 10.1155/2020/2313698
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    Cited by:

    1. Hongyu Long & Hongyong Liu & Xingwei Li & Longjun Chen, 2020. "An Evolutionary Game Theory Study for Construction and Demolition Waste Recycling Considering Green Development Performance under the Chinese Government’s Reward–Penalty Mechanism," IJERPH, MDPI, vol. 17(17), pages 1-21, August.
    2. Fu, Lingxian & Tang, Jie & Meng, Fanyong, 2021. "A disease transmission inspired closed-loop supply chain dynamic model for product collection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    3. Yan Chen & Zhuying Wang & Yan Liu & Zongchao Mou, 2023. "Coordination Analysis of the Recycling and Remanufacturing Closed-Loop Supply Chain Considering Consumers’ Low Carbon Preference and Government Subsidy," Sustainability, MDPI, vol. 15(3), pages 1-24, January.

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