Evolutionary Game Analysis of the Reverse Supply Chain Based on the Government Subsidy Mechanism

The evolutionary game model of cooperation behavior of manufacturers and collectors in reverse supply chain is established based on the government subsidy mechanism. Relevant conclusions are proved and verified by means of numerical simulation. Two necessary and sufficient conditions for the game members´ cooperation are obtained. The one that cooperation can bring more than un-cooperation of profits. The other one is that the subsidies given by government are not less than manufacturers´ cooperation costs. On this basis, the greater the government subsidizes the higher risk preference the enterprises tend to cooperate.