With the economic development and social progress, the discarded electrical equipment increased quickly year by year. Moreover, most of the waste electrical equipment flows into the non-formal institutions, such as "street recovery guerrillas" and "underground factories", which damages the environment seriously. On the other hand, the demand of natural resources also increased day by day. In the context of promoting environmental protection and resource recycling, how to recycle the waste electrical equipment efficiently and use them rationally becomes the focus of government and the electrical manufacturing enterprise.This paper is based on the theory of foreign and domestic research, and learns the experience of foreign waste electrical equipment recycling management. In the background of EPR, the paper uses eco-economy, circular economy and sustainable development theory to explain reverse logistics of waste electrical equipment. First, It probes the feasibility of third-party participation in recycling waste electrical equipment by using comparative analysis. And then, it analyzes the efficiency of the reverse supply chain by using game theory and studies the incentives mechanism problem between manufactures and third-party recyclers. Which is different from previous literature is that this paper introduces consumer surplus to the efficiency analysis, in previous literature, they only considered the profits of the members on reverse supply chain. In the analysis of incentives mechanism, this paper not only considers the level of effort of third-party recyclers, but also introduces their operational capacity and market competition factors, the consideration of these factors can develop more effective incentive contracts.Finally, From the perspective of consumers, manufacturers and third-party recyclers, the paper gives some recommendation about third-party participation in recycling the waste electrical equipment. This research can offer theoretical and practical guidance to waste electrical equipment recycling behavior, which can promote the recycling of waste electrical equipment into formal channel more quickly, and achieve the ultimate goal of environment and resource recycling. |