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Using game theory for analysing pricing models in closed-loop supply chain from short- and long-term perspectives

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  • Maryam Esmaeili
  • Ghazaleh Allameh
  • Taraneh Tajvidi

Abstract

Closed-loop supply chain (CLSC) management is an environmental approach to supply chain management that aims to prevent hazardous material from entering the nature by means of creating a reverse flow. This paper studies the short- and long-term behaviour of agents in implementing the appropriate collecting strategy in a two-echelon CLSC. In short-term, based on the Stackelberg game, several novel pricing models for different collecting strategies are proposed and compared. Then, the optimal policies of the pricing decisions are determined for each model. The long-term behaviour of companies in implementing collecting process is examined by evolutionary game theory and the most stable strategy is selected. Furthermore, a numerical example is presented to compare the different collecting structures. Finally, a managerial insight is provided to indicate the effect of key parameters such as remanufacturing rate, marketing elasticity and government subsidies on selecting the appropriate strategy.

Suggested Citation

  • Maryam Esmaeili & Ghazaleh Allameh & Taraneh Tajvidi, 2016. "Using game theory for analysing pricing models in closed-loop supply chain from short- and long-term perspectives," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2152-2169, April.
    • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:7:p:2152-2169
    DOI: 10.1080/00207543.2015.1115907
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    Cited by:

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    4. Paweł Nowicki & Marek Ćwiklicki & Piotr Kafel & Janusz Niezgoda & Magdalena Wojnarowska, 2023. "The circular economy and its benefits for pro‐environmental companies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4584-4599, November.
    5. Khosroshahi, Hossein & Azad, Nader & Jabbarzadeh, Armin & Verma, Manish, 2021. "Investigating the level and quality of the information in the environmental disclosure report of a corporation considering government intervention," International Journal of Production Economics, Elsevier, vol. 235(C).
    6. Gu, Wei & Wei, Lirong & Zhang, Wenqing & Yan, Xiangbin, 2019. "Evolutionary game analysis of cooperation between natural resource- and energy-intensive companies in reverse logistics operations," International Journal of Production Economics, Elsevier, vol. 218(C), pages 159-169.
    7. Ziang Liu & Tatsushi Nishi, 2019. "Government Regulations on Closed-Loop Supply Chain with Evolutionarily Stable Strategy," Sustainability, MDPI, vol. 11(18), pages 1-29, September.
    8. Yu, Yanan & He, Yong & Zhao, Xuan, 2021. "Impact of demand information sharing on organic farming adoption: An evolutionary game approach," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    9. Yue Tan & Chunxiang Guo, 2019. "Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    10. Yangke Ding & Lei Ma & Ye Zhang & Dingzhong Feng, 2018. "Analysis of Evolution Mechanism and Optimal Reward-Penalty Mechanism for Collection Strategies in Reverse Supply Chains: The Case of Waste Mobile Phones in China," Sustainability, MDPI, vol. 10(12), pages 1-17, December.
    11. Wenbin Wang & Jie Guan & Mengxin Zhang & Jinyu Qi & Jia Lv & Guoliang Huang, 2022. "Reward-Penalty Mechanism or Subsidy Mechanism: A Closed-Loop Supply Chain Perspective," Mathematics, MDPI, vol. 10(12), pages 1-22, June.
    12. Maryam Shoaeinaeini & Kannan Govindan & Donya Rahmani, 2022. "Pricing policy in green supply chain design: the impact of consumer environmental awareness and green subsidies," Operational Research, Springer, vol. 22(4), pages 3989-4028, September.
    13. Shan Lyu & Yuyu Chen & Lei Wang, 2022. "Optimal Decisions in a Multi-Party Closed-Loop Supply Chain Considering Green Marketing and Carbon Tax Policy," IJERPH, MDPI, vol. 19(15), pages 1-23, July.
    14. Wu, Xiaole & Zhou, Yu, 2019. "Buyer-specific versus uniform pricing in a closed-loop supply chain with third-party remanufacturing," European Journal of Operational Research, Elsevier, vol. 273(2), pages 548-560.
    15. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    16. Zhicheng Weng & Pinliang Luo, 2021. "Supervision of the Default Risk of Online Car-Hailing Platform from an Evolutionary Game Perspective," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    17. Bengang Gong & Chunming Victor Shi & Xiaodong Li & Jinshi Cheng, 2021. "Do the subsidies help or hurt the remanufacturing closed‐loop supply chain?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 961-973, June.
    18. Fidel Torres & César García-Díaz, 2018. "Evolutionary dynamics of two-actor VMI-driven supply chains," Computational and Mathematical Organization Theory, Springer, vol. 24(3), pages 351-377, September.

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