How points-exchange incentives in a closed-loop supply chain weaken competition from the informal recycler

To reduce the negative impact of informal recycling on environment, we consider competition in industry to explore manufacturer's collection channel choice and optimal points-exchange level. In this paper, a closed-loop supply chain model including manufacturer an recycler (IR) is constructed. Stackelberg game theory used as theoretical guide. addition, study decision problem under profit maximization model. We find that offer increases sales new products alleviates from IR. The prefers personally implement activities directly collect consumers when disposal revenue IR low. exchange strategy forces increase acquisition price face large cost pressure, which significantly reduces quantity coordination problem, revenue-sharing contract allows both third party be win-win situation. focus effectiveness incentives for manufacturers parties. Future research could diversity offers by government agencies chain.