Pricing Models for Recycling Used Home Appliances under Different Collecting Methods in China

摘要

This paper studies the pricing decision-making for recycling used home appliances when wholesale and retail prices for the green home appliances have already been determined by other methods. In consideration of the influences of the effective recycle behavior of the used home appliances to the whole supply chain, the paper proposes three game models about the recycle pricing for the used home appliances under three different collection methods respectively. The three collection methods are 1) manufacturer collection (Model M), 2) retailer collection (Model R) and 3) third-party collection (Model 3P). Then the paper analyzes how the recycle price for the used home appliances and the total channel profits are affected by the choice of the collection methods. The pricing models presented in this paper provide a practical and theoretical guidance for home appliances enterprises in making pricing decisions.