Reverse supply chain decisions with online and offline dual recycling channels considering consumer fairness concerns and channel preference

Abstract

Online recycling is becoming more prevalent as a result of the quick development of innovative technologies to enhance the recycling system. Based on consumer fairness concerns and channel preferences, we establish an online and offline dual-recycling channel reverse supply chain model in which a processor dominates and a recycler follows according to Stackelberg game theory and investigates the impact of two consumer’s behavioral preferences upon supply chain decisions. The results show that: (1) for the game leader, the impact of consumer fairness concerns is greater than that of channel preference; (2) for the game follower, the impact of channel preference is greater than that of consumer fairness concerns; (3) entrusting the recycler to collect can help the leader reduce profit losses caused by consumer fairness concerns.