Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment

Deng Li, Ying Peng, Chunxiang Guo and Ruwen Tan
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Deng Li: College of Architecture & Environment, Sichuan University, Chengdu 610065, China
Ying Peng: College of Architecture & Environment, Sichuan University, Chengdu 610065, China
Chunxiang Guo: Business School, Sichuan University, Chengdu 610065, China
Ruwen Tan: College of Architecture & Environment, Sichuan University, Chengdu 610065, China

IJERPH, 2019, vol. 16, issue 20, 1-24

Abstract: In order to investigate the issues of the recycling and remanufacturing of construction and demolition waste (C&D waste), this paper develops a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a recycler, considering both the retailer’s fairness concern psychology and governmental regulations. Four mathematical models are developed for the calculations, and the models are solved through game theory. In both the decentralized and centralized scenarios, the members’ strategies are discussed and the optimal values of decision variables are determined. A numerical study is carried out for sensitivity analyses to verify the accuracy of the theoretical conclusions. The results reveal that retailer fairness concerns lead to a decrease in the wholesale price of building materials and negatively affect manufacturers’ profits. Additionally, governmental regulations can effectively increase the recycling amount and improve the utilization rate of C&D waste, and promote a virtuous cycle of the recycling and remanufacturing of C&D waste.

Keywords: C&D waste; closed-loop supply chain; game theory; fairness concern; governmental regulation (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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