Decision Analysis Between Government and Competing Enterprises Under E-Waste Take-Back Regulations

With the rapid technological development, the waste electrical and electronic equipment (WEEE) increase sharply. To manage WEEE, the government has enacted a series of regulations, such as collection rate regulation and tax regulation. Using a stylized equilibrium model, we analyze the problem as a Stackelberg game between the government and two enterprises (a manufacturer and a remanufacturer) under both collection rate and tax regulations. First, we study enterprises’ behavior under the two regulations, including production and pricing decisions. Then, we explore how should the government set the optimal collection rate and tax according to the decisions of enterprises.