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Analysis of Evolution Mechanism and Optimal Reward-Penalty Mechanism for Collection Strategies in Reverse Supply Chains: The Case of Waste Mobile Phones in China

Author

Listed:
  • Yangke Ding

    (College of Mechanical Engineering, Zhejiang University of Technology, Hangzhou 310014, China)

  • Lei Ma

    (College of Mechanical Engineering, Zhejiang University of Technology, Hangzhou 310014, China)

  • Ye Zhang

    (College of Mechanical Engineering, Zhejiang University of Technology, Hangzhou 310014, China)

  • Dingzhong Feng

    (College of Mechanical Engineering, Zhejiang University of Technology, Hangzhou 310014, China)

Abstract

The aim of this paper is to discuss the coopetition (cooperative competition) relationship between a manufacturer and a collector in the collection of waste mobile phones (WMPs) and examine the evolution mechanism and the internal reward-penalty mechanism (RPM) for their collection strategies. A coopetition evolutionary game model based on evolutionary game theory was developed to obtain their common and evolutional collection strategies. The pure-strategy Nash equilibriums of this model were obtained which showed their collection strategy choices of perfect competition or cooperation. The mixed strategy Nash equilibrium was obtained which revealed evolution trends and laws. In addition, the optimal RPM was obtained in the sensitivity analysis of related parameters. The example of WMPs in China was taken to examine the simulation of the RPM. Results show that (i) although the manufacturer and the collector may change their strategies of cooperation and competition over time, cooperation is their best choice to increase payoffs; (ii) the optimal RPM is beneficial to propel their cooperation tendency and then to increase their payoffs.

Suggested Citation

  • Yangke Ding & Lei Ma & Ye Zhang & Dingzhong Feng, 2018. "Analysis of Evolution Mechanism and Optimal Reward-Penalty Mechanism for Collection Strategies in Reverse Supply Chains: The Case of Waste Mobile Phones in China," Sustainability, MDPI, vol. 10(12), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4744-:d:190052
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    Cited by:

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    3. Gayle Patrao & Ajit Karnik, 2023. "Identifying Drivers and Hindrances to the Disposal of Used Mobile Phones: A Study of User Behavior in the UAE," SAGE Open, , vol. 13(3), pages 21582440231, September.
    4. Youngwook Ko & Yanghon Chung & Hangyeol Seo, 2020. "Coopetition for Sustainable Competitiveness: R&D Collaboration in Perspective of Productivity," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    5. Faridzah Jamaluddin & Nizaroyani Saibani, 2021. "Systematic Literature Review of Supply Chain Relationship Approaches amongst Business-to-Business Partners," Sustainability, MDPI, vol. 13(21), pages 1-25, October.
    6. Wang, Zhen & Duan, Yongrui & Huo, Jiazhen, 2022. "The impact of government intervention measures on recycling of waste electrical and electronic equipment in China considering consumer decision," Energy Policy, Elsevier, vol. 160(C).
    7. Dingzhong Feng & Xinghui Yu & Yongbo Mao & Yangke Ding & Ye Zhang & Zhiyan Pan, 2019. "Pricing Decision for Reverse Logistics System under Cross-Competitive Take-Back Mode Based on Game Theory," Sustainability, MDPI, vol. 11(24), pages 1-20, December.

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