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Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment

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  • Deng Li

    (College of Architecture & Environment, Sichuan University, Chengdu 610065, China)

  • Ying Peng

    (College of Architecture & Environment, Sichuan University, Chengdu 610065, China)

  • Chunxiang Guo

    (Business School, Sichuan University, Chengdu 610065, China)

  • Ruwen Tan

    (College of Architecture & Environment, Sichuan University, Chengdu 610065, China)

Abstract

In order to investigate the issues of the recycling and remanufacturing of construction and demolition waste (C&D waste), this paper develops a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a recycler, considering both the retailer’s fairness concern psychology and governmental regulations. Four mathematical models are developed for the calculations, and the models are solved through game theory. In both the decentralized and centralized scenarios, the members’ strategies are discussed and the optimal values of decision variables are determined. A numerical study is carried out for sensitivity analyses to verify the accuracy of the theoretical conclusions. The results reveal that retailer fairness concerns lead to a decrease in the wholesale price of building materials and negatively affect manufacturers’ profits. Additionally, governmental regulations can effectively increase the recycling amount and improve the utilization rate of C&D waste, and promote a virtuous cycle of the recycling and remanufacturing of C&D waste.

Suggested Citation

  • Deng Li & Ying Peng & Chunxiang Guo & Ruwen Tan, 2019. "Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment," IJERPH, MDPI, vol. 16(20), pages 1-24, October.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:20:p:3896-:d:276460
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    References listed on IDEAS

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    Cited by:

    1. Xingwei Li & Ruonan Huang & Jiachi Dai & Jingru Li & Qiong Shen, 2021. "Research on the Evolutionary Game of Construction and Demolition Waste (CDW) Recycling Units’ Green Behavior, Considering Remanufacturing Capability," IJERPH, MDPI, vol. 18(17), pages 1-32, September.
    2. Hongyu Long & Hongyong Liu & Xingwei Li & Longjun Chen, 2020. "An Evolutionary Game Theory Study for Construction and Demolition Waste Recycling Considering Green Development Performance under the Chinese Government’s Reward–Penalty Mechanism," IJERPH, MDPI, vol. 17(17), pages 1-21, August.
    3. Junwu Wang & Yinghui Song & Wei Wang & Suikuan Wang & Feng Guo & Jiequn Lu, 2022. "Marine Construction Waste Recycling Mechanism Considering Public Participation and Carbon Trading: A Study on Dynamic Modeling and Simulation Based on Sustainability Policy," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    4. Dooho Lee, 2020. "Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures," IJERPH, MDPI, vol. 17(7), pages 1-26, March.
    5. Haoxuan Zheng & Xingwei Li & Xiaowen Zhu & Yicheng Huang & Zhili Liu & Yuxin Liu & Jiaxin Liu & Xiangye Li & Yuejia Li & Chunhui Li, 2022. "Impact of Recycler Information Sharing on Supply Chain Performance of Construction and Demolition Waste Resource Utilization," IJERPH, MDPI, vol. 19(7), pages 1-22, March.

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