Difference Game of Closed-Loop Supply Chain of Innovative Products with Discrete-Time Conditions

Lang Liu, Yutao Pu, Zhenwei Liu and Junjie Liu ()
Additional contact information
Lang Liu: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China
Yutao Pu: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China
Zhenwei Liu: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China
Junjie Liu: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China

Mathematics, 2023, vol. 11, issue 13, 1-20

Abstract: This paper aims to explore the impact of the purchase regret of consumers on dynamic closed-loop supply chains (CLSCs) under discrete-time conditions. Durable products are mostly traded under discrete-time conditions, and consumers tend to have different purchase regret psychologies during the trading process of different types of durable products (innovative or remanufactured). In addition, different purchase regret psychologies can affect the dynamic decision-making behaviour of the nodal enterprises in the supply chain, thus affecting the dynamic decision-making optimization sequence of the supply chain and nodal enterprises. Based on the traditional Bass model, this paper introduces the factor of consumer purchase regret psychology into the Bass model and constructs a model of a CLSC led by the manufacturer and followed by the retailer and recycler on the premise of heterogeneous characteristics of new products and remanufactured products. The optimal control theory of discrete systems is used to obtain the optimal decision sequence for each participant in the CLSC, when there is consumer regret psychology in the market. Then, the effects of consumer purchase regret psychology on the members of the CLSC at each stage are analysed. Finally, the conclusions are verified by using a numerical analysis. Compared to previous studies, the results further revealed the following: when the market share of brand new products is below 50%, the wholesale and retail prices are positively related to the regret psychology; while when they are above 50%, the wholesale and retail prices are negatively related to the regret psychology; the product sales and the manufacturers and retailers’ profits are negatively related to the regret psychology; purchase regret psychology does not affect the recyclers’ profits. To mitigate the negative consequences of the purchase regret psychology, manufacturers and merchants should completely grasp the market, enhance product quality, such that the price plan for the product is fairer.

Keywords: supply chain management; post-purchase regret; difference game; Bass model; closed-loop supply chain; optimal decision-making (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7390/11/13/2999/pdf (application/pdf)
https://www.mdpi.com/2227-7390/11/13/2999/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:11:y:2023:i:13:p:2999-:d:1187432

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().