Influence of government regulation on the stability of dual-channel recycling model based on customer expectation
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In this paper, the consumers choose different channels to take part in recycling based on the utility they get. A recovery master–slave game model based on customer utility expectations which includes online recyclers, offline recyclers and remanufacturers is established, and the game process which consists of two links which adopt heterogeneous decision-making methods is discussed. And further, a dynamic intervene method which the government subsidizes for maximizing social welfare is considered. This paper analyzes the source of system instability in each link and the impact of relevant parameters on system stability and profitability. The impact of government intervention on system stability is also studied. The results show that chaos occurs with the increase in the remanufacturer’s sensitivity. But with the government’s emphasis on environmental protection within a reasonable range, the chaos can be controlled and the system’s profits rise.
KeywordsDual channel Customer expectation Government intervention Heterogeneous decision mode Chaos Social welfare
The research was supported by the National Natural Science Foundation of China (No. 71571131) and supported by Tianjin University Innovation Fund.
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Conflict of interest
The authors declare no conflict of interest regarding the publication of this paper.