Recovery and Pricing Decision of Supply Chain in Mixed Competition Game

Abstract

This paper compares the traditional and closed loop supply chain in Bertrand competition. Each supply chain consists of a retailer and a supplier. The two chains compete with each other in two mixed competition models. In these two mixed competitive games, the competition intensity between the two chains and the product recovery rate of the closed loop supply chain are studied, which affect the market price, the profit of the two chains and the equalization decision of the supply chain. The research results show that the total profit of the traditional chain decreases with the increase in product recovery rate, and the total profit of the closed loop chain increases with the increase in product recovery. The profit of both chains increases as the intensity of competition increases.