Title: An evolutionary game approach of analysis for enterprises implementing reverse logistics

Authors: Lirong Wei; Qun Zhang; Chao Zhang

Addresses: Donlinks School of Economics and Management, University of Science and Technology Beijing, No. 30 Xuyuan Road, Haidian District, 100083, Beijing, China ' Donlinks School of Economics and Management, University of Science and Technology Beijing, No. 30 Xuyuan Road, Haidian District, 100083, Beijing, China ' School of Metallurgical and Ecological Engineering, University of Science and Technology Beijing, No. 30 Xuyuan Road, Haidian District, 100083, Beijing, China

Abstract: Reverse logistics has become one of the most important competitive strategies of enterprises. This paper addresses the problem of decision making on whether to implement reverse logistics for manufacturers. An evolutionary game model is proposed to facilitate decision making in competitive and cooperative market environments. The model contains two main processes: a replicator dynamic procedure and evolutionary stable strategy (ESS) analysis. The replicator dynamic process examines the evolution trend of the reverse logistics strategy under two different environments. ESSs are used to generate a stable strategy in the long run. A simulation experiment is conducted using the MATLAB simulation platform to verify theoretical results. By applying the evolutionary game theory to the study of the reverse logistics strategy, this study identifies best decisions for manufacturers.

Keywords: reverse logistics; evolutionary game theory; EGT; replicator dynamics; decision making.

DOI: 10.1504/IJSTM.2017.085475

International Journal of Services Technology and Management, 2017 Vol.23 No.3, pp.204 - 218

Received: 07 Jan 2016
Accepted: 15 Apr 2016

Published online: 20 Jul 2017 *

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