Research on differential pricing model of closed-loop supply chain based on substitution

Based on the consideration of the difference between a new product and a remanufactured product, this paper studies the product pricing model of a closed-loop supply chain which consists of a manufacturer, a retailer and a third-party. By the method of game theory, we analyze two differential product pricing models and obtain the optimal pricing strategies of supply chain members and the final system profits. Finally, through the numerical simulation, we make a further understanding of the impacts of the price fixing, recycled rate and total revenue that are caused by the change of parameter substitution coefficient and exogenous variable.