A Game Model and Contract Design for the Pricing of Recycling Used Home Appliances in Accordance with the Manufacturer's Collecting Method

Using the price for recycling used home appliances as a variable in the decision-making process, this paper studies the pricing decision-making process of the home appliances enterprises when a wholesale and retail price for the green home appliances have already been determined by other methods. In consideration of the influences of the effective recycle behavior of the used home appliances to the whole supply chain, a new demand function was created. Then a game model about the recycle pricing for the used home appliances is presented in accordance with the manufacturer’s collecting method. A revenue and expense-sharing contract is designed to coordinate the supply chain so as to improve the performance of the green supply chain in terms of the recycle of the used home appliances.