Abstract:The government replacement subsidy promotes product upgrading and destroys the profits distribution pattern of closed loop supply chain. The members’ profits distribution models in the closed loop supply chain in the non subsidy policy and in the replacement policy are set up by the game theory based on game theory in the home appliances replacement background. The results show that the replacement subsidy can promote the product sales volume, waste product recovering volume and the members of closed loop supply chain profits and reduce the costs of waste products collection activities; the government subsidy coefficient can effectively adjust the members’ profits distribution in the closed loop supply chain; the average of the government subsidy, government subsidy coefficient, limits of government subsidy can affect the subsidy influence significantly.
