Closed-Loop Supply Chain Game Model with a Common Retailer

A closed-loop supply chain(CLSC) consist of two manufacturers and one common retailer with product remanufacturing are modeled by using game theory, in this CLSC, the common retailer is engaged in the collection of used products in addition to distributing new products of two manufacturers. The optimal product return rates, and price competition decision- making are studied under three different market structures, Manufacturer Stackelberg market, Retailer Stackelberg market, and Manufacturer- Retailer Nash market. The results show that the industry as a whole as well as consumer and environment benefit from lower prices, larger return rates and profits when there is no market leadership. However, an individual member has an incentive to play the leader´s role. When consider market leadership only, the environment, industry and consumer prefer the market dominated by retailer.