Price coordination for reverse supply chain under asymmetric information

This paper studies the pricing of the reverse supply chain composed of retailers and manufacturers based on the Bane theory. By analyzing the pricing strategy of the retailer and the manufacturer in the reverser supply chain when the information of recycling cost is symmetry and asymmetry the author concludes that the manufacturer undertakes more risks when the information is asymmetry. Therefore the manufacturer needs to guard against risks associated with asymmetric information. And this paper further gives up the manufacturers screening contract which reduces the manufacturer´s risk.