Recycling pricing of valuable WEEE based on hotelling model

Abstract

Considering the convenience of third-party recycler, this paper uses the Hotelling competition model and the Stackelberg game to study the recycling competition between a producer and a third-party recycler in the waste electronic and electrical equipment (WEEE) recycling market. Stackelberg game theory is used to study the pricing decisions of recycling of WEEE for producer and third-party recycler under the conditions of non-competition, partial coverage competition and complete coverage competition. The results of the study show that the recycling prices of producer and recycler are not negatively related to the unit revenue. The market coverage is positively related to both sides' unit revenue. The producer's profit under full coverage with competition is always higher than the partial coverage with competition, and the profit of recycler depends on unit revenue.