Complexity of Reverse Supply Chain Pricing Game Model Based on Recycler Heterogeneity Behavior

Abstract

Recycling and remanufacturing is one kind of production and operation mode in which enterprises maintain harmony and compatibility with the environment. This paper constructs a competition model for the recycling of reverse supply chain considering the behavioral factors of recyclers. In accordance with the definition of the fixed point, we calculate the four equilibrium points of the system and also analyze the local and global stability of the system. Different from former researches, this paper emphasizes on the study of the impact on the long-term operation and profit of the system by those behavioral factors. The study shows that: those behavioral factors of the enterprise, like price adjustment speed, the fairness concern coefficient, and the trade-off coefficient of market share, have significant effects on the size of the stability region. Through some simulation methods like the system’s price bifurcation diagram, maximum Lyapunov exponent, price power spectrum and so on, the characteristics of the system with its chaotic dynamics will be illustrated in this paper. The paper also focuses on the study of the impacts on the system’s profits by heterogeneous behavioral factors. It is furthermore found that once some drastic pricing strategies are being adopted, both the profits of any party and the operating efficiency of the entire system will be damaged.