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Pricing Decision of Closed-loop Channel with different Power Structures

Huaige Zhang, Liping Yao, Xianpei Hong


The closed-loop supply chain models with product remanufacturing by the manufacturer which distributing products by two competing retailers and recycling used products by third-party recycler were constructed. Using of game theory, we firstly model three options as decentralized decision-making systems with Nash equilibrium game between the manufacturer and the retailers (i.e., no leader), the manufacturer being the Stackelberg leader, and the two retailers being the Stackelberg leader, and then we address the problem of pricing decisions and collecting decisions of the closed-loop supply chain. The results show that no leader game is the best, because consumer as well as closed-loop supply chain system and the society as a whole are all benefit from it; When consider market leadership only, the leader can always get more benefit from the game, but the third-party recycler as well as closed-loop supply chain system and the whole society prefer the market dominated by retailers.


Closed-Loop Channel, Pricing Decision, Channel Power Structure, Game Theory

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