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Recycling and differential pricing strategies in closed-loop supply chains considering blockchain

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Abstract

This paper aims to explore the role of blockchain in recycling when consumers have quality concerns about remanufactured products. Using the game-theoretical method, we analyze recycling and differential pricing strategies in closed-loop supply chains when a third party conducts the recycling activity. We further study the impacts of recycling channels. Our findings demonstrate that blockchain can increase the retail prices of new and remanufactured products and the profit of the third party when the blockchain usage fee is low. Otherwise, the manufacturer and the retailer will benefit from the use of blockchain. Besides, our study shows that when the blockchain usage fee is low, or the degree of quality information disclosure of remanufactured products is low, the application of blockchain can increase social welfare. Finally, we find blockchain can raise the collection rate, which is independent of the recycling channels.

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Notes

  1. https://www.cas.cn/xw/kjsm/gjdt/200906/t20090608_625237.shtml

  2. http://www.jiading.gov.cn/xinwen/jdtt/content_68392

  3. https://www.maigoo.com/news/532610.html

  4. https://www.recyclego.com/innovative-technologies/

  5. https://www.ibm.com/cn-zh/products/supply-chain-intelligence-suite/blockchain-transparent-supply

  6. https://new.qq.com/rain/a/20230817A08VGT00.

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Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant number 72071081) and Fundamental Research Funds for the Central Universities (Grant number QNTD202302).

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  1. Department of Electronic Business, South China University of Technology, Guangzhou, 51006, Guangdong, China

    Lei Yang, Li Lan & Yao Wan

  2. Pazhou Laboratory, Guangzhou, 510330, Guangdong, China

    Lei Yang

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Yang, L., Lan, L. & Wan, Y. Recycling and differential pricing strategies in closed-loop supply chains considering blockchain. Electron Commer Res (2024). https://doi.org/10.1007/s10660-024-09831-8

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