Decision models of a closed-loop supply chain with competitive dual-channel collection considering the reference price effect: ecological and economic perspective

This study examines the impact of the reference price on different structures of competitive dual-channel collecting (CDCC) within closed-loop supply chains (CLSC) to determine the most effective reverse channel for collecting used products. Three distinct CLSC models were developed: 1) a model with competition between the manufacturer and retailer (M-R model), 2) a model with competition between the retailer and a third-party collector (R-3P model), and 3) a model with competition between the manufacturer and a third-party collector (M-3P model). Using game theory and backward induction, we derived optimal pricing and collection strategies for each model, incorporating the reference price effect. The results demonstrate that the M-R model is the most efficient in terms of market price, collection rate, and overall supply chain profit. A comparative analysis was conducted against dual-channel collection models that do not consider the reference price effect, showing that models with the reference price achieve higher collection rates and third-party profits. Additionally, we performed numerical and sensitivity analyses to ensure the robustness of our findings. The practical implications of the study, particularly for businesses aiming to improve both environmental and economic outcomes through efficient collection processes, are emphasized. The study contributes to the existing CLSC literature by integrating the reference price effect into competitive dual-channel models and providing actionable insights for optimizing collection strategies.