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Dynamics analysis on competition between manufacturing and remanufacturing in context of government subsidies

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  • Zhao, LiuWei
  • Chang, Jianwei
  • DU, Jianguo

Abstract

In this paper, a two-period game model involving an original manufacturer, a remanufacturer and a retailer was built in context of government subsidies. The system can be regarded as a coupling dynamic of the forward supply chain of Stackelberg game model. Based on this game model, the impact of three government subsidy scenarios (the government subsidizes no one; the government subsidizes remanufacturers; and the government subsidizes the consumers through retailers) on the unit wholesale price, retail price and profit of the two kinds of products is analyzed. Based on the analysis, some dynamic phenomena such as bifurcation and chaos are found. Numerical simulations and the largest Lyapunov exponent are used to provide experimental evidence for the complicated behaviors of the system evolution. The results show that the government subsidy for remanufacturers can reduce the retail price of remanufactured products, increase the retailer's profit, and improve the market competitiveness of remanufactured products, but it makes a small difference to the remanufacturers’ profit; and the government subsidy for consumers has a significant impact on the market competitiveness of remanufactured products.

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  • Zhao, LiuWei & Chang, Jianwei & DU, Jianguo, 2019. "Dynamics analysis on competition between manufacturing and remanufacturing in context of government subsidies," Chaos, Solitons & Fractals, Elsevier, vol. 121(C), pages 119-128.
    • Handle: RePEc:eee:chsofr:v:121:y:2019:i:c:p:119-128
    DOI: 10.1016/j.chaos.2019.01.034
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    Cited by:

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    4. Yuqing Hu & Lijun Meng & Jingya Xue & Hongying Xia, 2023. "Authorization or Outsourcing: Considering the Contrast/Assimilation Effect and Network Externality of Remanufactured Products under Government Subsidy," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    5. De, Arijit & Ray, Ankita & Kundu, Tanmoy & Sheu, Jiuh-Biing, 2023. "Is it wise to compete or to collaborate? Remanufacturing business models under collective extended producer responsibility legislation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    6. Yuqing Hu & Lijun Meng & Zuqing Huang, 2023. "Pricing and Sales Effort Decisions in a Closed-Loop Supply Chain Considering the Network Externality of Remanufactured Product," Sustainability, MDPI, vol. 15(7), pages 1-26, March.
    7. Zhao, Liuwei & Jin, Shuai & Jiang, Hongyun, 2022. "Investigation of complex dynamics and chaos control of the duopoly supply chain under the mixed carbon policy," Chaos, Solitons & Fractals, Elsevier, vol. 164(C).
    8. Huang, Xingyu & Zheng, Pengjun & Liu, Guiyun, 2024. "Non-cooperative and Nash-bargaining game of a two-parallel maritime supply chain considering government subsidy and forwarder's CSR strategy: A dynamic perspective," Chaos, Solitons & Fractals, Elsevier, vol. 178(C).
    9. Liuwei, Zhao & Shuai, Jin & Hongyun, Jiang, 2024. "Complex dynamics of dual oligopoly demand uncertainty under carbon emission trading mechanism," Chaos, Solitons & Fractals, Elsevier, vol. 179(C).
    10. Biao Li & Yong Geng & Xiqiang Xia & Dan Qiao & Hao Wang, 2021. "Comparatively Analyzing the Impact of Government Subsidy and Carbon Tax Policy on Authorized Remanufacturing," IJERPH, MDPI, vol. 18(16), pages 1-18, August.

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