IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v24y2022i10d10.1007_s10668-021-01916-w.html
   My bibliography  Save this article

Dual-channel recycling e-waste pricing decision under the impact of recyclers’ loss aversion and consumers’ bargaining power

Author

Listed:
  • Zhen Li

    (Jiangsu University)

  • Jia Zhao

    (Jiangsu University)

  • Qingfeng Meng

    (Jiangsu University)

Abstract

The issue of e-waste recycling is imminent. With the continuous enhancement of Internet technology and people's awareness of sustainable development, the dual-channel reverse supply chain management combining online and offline becomes particularly important. In order to promote the sustainable development of dual-channel reverse supply chain recycling, this paper uses Stackelberg game and Rubinstein alternating offers bargaining game, and builds a dual-channel reverse supply chain model under the influence of loss aversion of recyclers and bargaining power of consumers. The purpose of this paper is to explore the recycling pricing decision of dual-channel reverse supply chain under the dual impact of loss aversion of recyclers and bargaining power of consumers. The results show that the increase in loss aversion of recyclers makes the recycling price of dual-channel recyclers decrease, but it increases their profits; the enhanced bargaining power of consumers raises the recycling price of products and increases the profits of members; the competition of recycling channels helps to improve the recycling price and profit of each member of the reverse supply chain. The results of this study provide theoretical basis for the members of dual-channel reverse supply chain to make optimal decisions in the case of bounded rationality, thereby promoting the sustainable development of reverse supply chain.

Suggested Citation

  • Zhen Li & Jia Zhao & Qingfeng Meng, 2022. "Dual-channel recycling e-waste pricing decision under the impact of recyclers’ loss aversion and consumers’ bargaining power," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11697-11720, October.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:10:d:10.1007_s10668-021-01916-w
    DOI: 10.1007/s10668-021-01916-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-021-01916-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-021-01916-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.
    2. Yanting Huang & Zongjun Wang, 2019. "Pricing and production decisions in a closed-loop supply chain considering strategic consumers and technology licensing," International Journal of Production Research, Taylor & Francis Journals, vol. 57(9), pages 2847-2866, May.
    3. Yan, Nina & Jin, Xuyu & Zhong, Hechen & Xu, Xun, 2020. "Loss-averse retailers’ financial offerings to capital-constrained suppliers: loan vs. investment," International Journal of Production Economics, Elsevier, vol. 227(C).
    4. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    5. Shlomo Benartzi & Richard H. Thaler, 1995. "Myopic Loss Aversion and the Equity Premium Puzzle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 73-92.
    6. Jiun-Hung Lin & Tzong-Ru Lee & William Jen, 2008. "Assessing asymmetric response effect of behavioral intention to service quality in an integrated psychological decision-making process model of intercity bus passengers: a case of Taiwan," Transportation, Springer, vol. 35(1), pages 129-144, January.
    7. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    8. Xiaodong Zhu & Jing Wang & Juan Tang, 2017. "Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers’ Bargaining," IJERPH, MDPI, vol. 14(12), pages 1-17, December.
    9. Xinsheng Xu & Felix T.S. Chan & Chi Kin Chan, 2019. "Optimal option purchase decision of a loss-averse retailer under emergent replenishment," International Journal of Production Research, Taylor & Francis Journals, vol. 57(14), pages 4594-4620, July.
    10. Chengli Liu & C. K. M. Lee & K. H. Leung, 2019. "Pricing Strategy in Dual-Channel Supply Chains with Loss-Averse Consumers," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(05), pages 1-22, October.
    11. Zhongwei Feng & Chunqiao Tan, 2019. "Pricing, Green Degree and Coordination Decisions in a Green Supply Chain with Loss Aversion," Mathematics, MDPI, vol. 7(3), pages 1-25, March.
    12. Danqin Yang & Tiaojun Xiao, 2017. "Coordination of a supply chain with loss-averse consumers in service quality," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3411-3430, June.
    13. Driesen, Bram & Perea, Andrés & Peters, Hans, 2012. "Alternating offers bargaining with loss aversion," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 103-118.
    14. Hu, Shu & Dai, Ying & Ma, Zu-Jun & Ye, Yu-Sen, 2016. "Designing contracts for a reverse supply chain with strategic recycling behavior of consumers," International Journal of Production Economics, Elsevier, vol. 180(C), pages 16-24.
    15. James E. Larsen & Joseph W. Coleman, 2014. "Senior citizen's bargaining power in residential real estate markets," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 7(1), pages 5-17, February.
    16. Juhong Chen & Di Wu & Peng Li, 2018. "Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences," Sustainability, MDPI, vol. 10(7), pages 1-31, June.
    17. Wei Liu & Shiji Song & Ying Qiao & Han Zhao, 2020. "Supply Chain Coordination with a Loss-Averse Retailer and Combined Contract," Mathematics, MDPI, vol. 8(4), pages 1-20, April.
    18. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
    19. Taleizadeh, Ata Allah & Sadeghi, Razieh, 2019. "Pricing strategies in the competitive reverse supply chains with traditional and e-channels: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 215(C), pages 48-60.
    20. Shaofu Du & Yujiao Zhu & Tengfei Nie & Haisuo Yu, 2018. "Loss-averse preferences in a two-echelon supply chain with yield risk and demand uncertainty," Operational Research, Springer, vol. 18(2), pages 361-388, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wentao Yi & Zhongwei Feng & Chunqiao Tan & Yuzhong Yang, 2021. "Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence," Mathematics, MDPI, vol. 9(24), pages 1-26, December.
    2. Jiaying Xu & Qingfeng Meng & Yuqing Chen & Jia Zhao, 2023. "Dual-Channel Pricing Decisions for Product Recycling in Green Supply Chain Operations: Considering the Impact of Consumer Loss Aversion," IJERPH, MDPI, vol. 20(3), pages 1-15, January.
    3. Lovric, M. & Kaymak, U. & Spronk, J., 2008. "A Conceptual Model of Investor Behavior," ERIM Report Series Research in Management ERS-2008-030-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    5. Dominika Czyz & Karolina Safarzynska, 2023. "Catastrophic Damages and the Optimal Carbon Tax Under Loss Aversion," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 303-340, June.
    6. Alexander Ludwig & Alexander Zimper, 2013. "A decision-theoretic model of asset-price underreaction and overreaction to dividend news," Annals of Finance, Springer, vol. 9(4), pages 625-665, November.
    7. Binswanger, Johannes, 2012. "Life cycle saving: Insights from the perspective of bounded rationality," European Economic Review, Elsevier, vol. 56(3), pages 605-623.
    8. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    9. Wei Liu & Han Zhao & Shiji Song & Wenxuan He & Xiaochen Li, 2021. "Coping with Loss Aversion and Risk Management in the Supply Chain Coordination," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    10. Tarık Kara & Emin Karagözoğlu & Elif Özcan-Tok, 2021. "Bargaining, Reference Points, and Limited Influence," Dynamic Games and Applications, Springer, vol. 11(2), pages 326-362, June.
    11. Daniele SCHILIRÒ, 2013. "Bounded Rationality: Psychology, Economics And The Financial Crises," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 4(1), pages 97-108.
    12. David Hirshleifer, 2001. "Investor Psychology and Asset Pricing," Journal of Finance, American Finance Association, vol. 56(4), pages 1533-1597, August.
    13. Wei Liu & Shiji Song & Ying Qiao & Han Zhao & Huachang Wang, 2020. "The Loss-Averse Newsvendor Problem with Random Yield and Reference Dependence," Mathematics, MDPI, vol. 8(8), pages 1-15, July.
    14. Teck H. Ho & Noah Lim & Colin Camerer, 2005. "Modeling the Psychology of Consumer and Firm Behavior with Behavioral Economics," Levine's Bibliography 784828000000000476, UCLA Department of Economics.
    15. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    16. Zhongwei Feng & Chunqiao Tan, 2019. "Pricing, Green Degree and Coordination Decisions in a Green Supply Chain with Loss Aversion," Mathematics, MDPI, vol. 7(3), pages 1-25, March.
    17. Eduard Marinov, 2017. "The 2017 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 117-159.
    18. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    19. Magi, Alessandro, 2009. "Portfolio choice, behavioral preferences and equity home bias," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(2), pages 501-520, May.
    20. Satakhun Kosavinta & Donyaprueth Krairit & Do Ba Khang, 2017. "Decision making in the pre-development stage of residential development," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 35(2), pages 160-183, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:24:y:2022:i:10:d:10.1007_s10668-021-01916-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.