The Analysis of Signaling Game in Reverse Supply Chain

This paper first constructs the signaling game model in reverse supply chain under incomplete information, then analyzes the perfect Bayesian equilibrium and deducts the conditions under which separating equilibrium, pooling equilibrium and semi-separating equilibrium occurred. The best strategy for related manufacturers is also proposed. The conclusion in this paper may be helpful to enrich the theory of reverse supply chain, and offer guides to relevant practitioners.