Pricing Decision of Closed-loop Supply Chain Considering Power Structure under Market Segmentation

doi:10.3969/j.issn.1007-7375.2022.06.016

Abstract

Abstract: The price game between manufacturing and remanufacturing under different power structures and the selection of competitive strategies for market leadership were studied in a demand market consisting of consumers with cognitive differences on remanufactured products. The decision game models under three different situations, in which the manufacturer was market leader (OL), the remanufacturer was market leader (RL) and no market leader (NL) were established and solved respectively. The results show that product has the lowest price and profit under NL mode. In general, when the producer is the market leader, the product has a strong competitive advantage and the highest price. The price difference between the two products and the demand for remanufactured products are the highest in OL mode, followed by NL mode and the lowest in RL mode; the demand for manufactured products is on the contrary. Except for a few cases in which the product demand gap between OL and RL mode is small, enterprises should not compete for market leadership.

Key words: power structure, cognitive differences, closed-loop supply chain, Stackelberg game

CLC Number:

F272.3

XU Guihong, CHEN Li, ZHANG Xinrui. Pricing Decision of Closed-loop Supply Chain Considering Power Structure under Market Segmentation[J]. Industrial Engineering Journal, 2022, 25(6): 136-145.

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