Differential pricing and recycling decisions based on market segmentation

摘要

This paper studies differential pricing and recycling decisions in a closed supply chain with one manufacturer and one retailer. The manufacturer makes the new product directly from raw material and remanufactured products with recycling used one. Considering the market segmentation and the consumer preference, we establish four decision models, which contain a centralized decision model and three Stankelberg game models, to explore the chain members' optimal strategies on price and profit. By using game theory, the firms optimal strategies and some managerial insights are obtained.