The strategy choice between competition and co-opetition for electric vehicle manufacturers with battery recycling
A system with two rival electric vehicle manufacturers(EVMs)is considered,where one EVM has battery technology(BT)and the other hasn't BT.Each EVM recycles its own retired batteries.The game-theoretic models are constructed and solved under competition model,patent co-opetition model and wholesale co-opetition model,respectively.And then,the EVMs'strategy choices between competition and co-opetition,and the decisions for retired battery recycling are explored.It is shown that the choice of the optimal strategy(Competition,Patent co-opetition or Wholesale co-opetition)depends on the bargaining power of EVMs,the degree of substitution between electric vehicles produced by the two EVMs,the battery cost difference between the two EVMs and the recycling value of retired batteries.It is also shown that the Pareto improvement in co-opetition strategies(Patent co-opetition or Wholesale co-opetition)leads to increased profits and decreased vehicle prices,which is beneficial to both EVMs and consumers;in addition,the Pareto improvement in the co-opetition strategies leads to decreased(or increased)recycling rate of EVM with(without)BT.Furthermore,it is shown that the recycling rate of retired batteries and profit for EVM with BT is increasing in its recycling value regardless of competition or co-opetition,while the impact of the recycling value of retired batteries on the recycling rate and profit for EVM without BT depends on EVMs'competitive/coopetitive relationship and the battery cost difference between the two EVMs.
competitionpatent co-opetitionwholesale co-opetitionbattery recyclingbar-gaining power
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