The Effect of Financial Subsidies on Hybrid Recycling Channels of Closed-Loop Supply Chain

In the hybrid recycling channels of closed-loop supply chain, we established retailers and manufacturers profit models in two different conditions-with and without financial subsidies. Based on these models, we compared the effect of financial subsidies on retailers and manufacturers' behavior. Studies show that after receiving financial subsidies from the government, the retailers and manufacturers' rate of recovery, profit, retail price and trade price are all higher than before. They share customers' financial subsidies by raising the retail price and trade price. The result is that customers have most of the financial subsidies, retailers take second place and manufacturers get the least.