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orgInternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013
AMultistageNegotiationMechnismfor
RecyclingWasteElectricalandElectronic
ProductsbasedonBayesianLearningModel
XinquanGe,LiLI,JianZhang,XiaozheYun
SchoolofEconomicsandManagement,BeijingInformationScienceandTechnologyUniversity,China
No.12oftheQingheXiaoyingEastRoad,HaidianDistrict,Beijing,China
xqge2001@yahoo.cn;lilinw2001@126.com;zhangjian@bistu.edu.cn;xzy315@126.com
Abstract
electronic
products
recycling
Management
regulations on August 20, 2008 at the No. 23 State
Council executive meeting and which had put into
practiceonJanuary1,2011.Thisdocumentintendedto
establishastandardizedandscientificwasteelectrical
and electronic products recovering system with the
coreistoestablishaspecialfundgalleryforrecycling
the waste electrical and electronic products, in which
thesourcesoffundsaretherecyclingfeesleviedtothe
manufacturers. The funds are mainly used to
subsidize other professional recyclers. In order to
increase the transparency of this program, the
establishing of the standards for collecting and
recyclingfundfeeandsubsidiesshouldbefullylisten
to the advices of the electrical and electronic product
manufacturing enterprises, processing enterprises,
relevantindustryassociations.
Keywords
WasteElectricalAndElectronicProducts;RecyclingMechanism;
MultistageNegotiation;BayesianLearning
Introduction
In recent years, along with the rapid development of
Chinas national economy, peoples living standards
have dramatically improved, and the demand for
electrical and electronic products also significantly
increased.Atthesametime,thescrappingofelectrical
andelectronicproductsinChinaalsoenteredthepeak
period.Asthewasteelectricalandelectronicproducts
contain a lot of plastic, steel, glass, nonferrous metals
and precious metals, the improper handling of these
resourceswillproducelargeamountsofpollutantsfor
the soil, water, thus affect the human health. As a
result, China had proposed the Waste electrical and
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InternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013www.ijesci.org
recoveringcostsandrecyclerrecoveringcosts.
The selfrecovering costs contain all kinds of costs
for operating and managing the recycle station
built by their own and also the investment,
operation and maintenance costs. The self
recovering costs are expressed as a quadratic
function in order to facilitate the subsequent
analysis,thatis,
Cg 2i p1 qg 2i (2)
Where Cg2i represents the recyclerrecovering
costs of manufacturer i, and p1 is the unit levying
fee it turned over to the government, and qg2i is
the quantity of waste products that the recycler
recoveredfrommanufactureri.
Itisexpectedthatthetotalofqgliandqg2ishould
beequaltothetotalamoutofwasteelectronicand
electrical products that the manufacturer i
producesandconsumedbythecustomer,so,
qgi qg1i qg 2i (3)
1)ManufacturersRecoveringCosts
3)ManufacturersRecoveringDecisionmaking
Formanufacturers,thecostofrecoveringelectronic
waste is mainly generated by two ways: self
Combinationoftheaboveanalysis,theproblemof
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3)RecyclersRecoveringDecisionmaking
The goal of the recycler is to earn the maximum
recovering profit, so the objective function can be
expressedas,
Pgi max Rg1i Cg1i Cg 2i rgi qg 1i agi bgi qg1i cgi qg21i p1 qg 2i
q g 1i , qg 2 i
(6)
qgi qg1i qg 2i
(7)
Psj max[ Rsj Csj ] [( p2 rsj )qsj asj bsj qsj csj qsj2 ]
P qg1i
=0,
Deriving the function and defining gi
Pgi qg 2i
=0 , we can get the optimal solution of
qgliandqg2ias
qq1i
qq 2i
rgi p1 bgi
2cgi
Psj qsj
Derivingthefunctionanddefining
cangettheoptimalsolutionofqsjas
(8)
(9)
TheNashEquilibriumSolutionoftheGovernment
Decision
The goal of the government is to maximize the total
social benefits of the recovering process, so the
objectivefunctioncouldbeexpressedas
Pg max[ Rsj Rgi ] [ rgi qg1i agi bgi qg1i cgi qg21i rsj qsj asj bsj qsj csj qsj2 ]
1)RecyclersRecoveringCosts
p1 , p2
j 1
i 1
i 1
j 1
Subjectto
n
q
i 1
g 1i
j 1
i 1
Equ.(8)
(10)
Equ.(13)
Solvingtheaboveconstrainedextremeproblemcould
get the optimal solution of p1 and p2, and we mark
themasp1*andp2*,
n
2)RecyclersRecoveringIncome
p1* p2*
q
i 1
gi
i 1
j 1
i 1
j 1
gi sj
gi
1
1
sj
2cgi
2csj
(15)
(11)
226
(13)
2csj
RecyclersRecoveryDecisionmakingProcess
=0,we
p2 rsj bsj
qsj
(12)
qsj
InternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013www.ijesci.org
Thespecificprocessisillustratedasfollows:
InitialDecisionontheStandards
Thegovernmentwillmakethedecisiononthelevying
fee standard that it will levy from the manufacturers,
markedas p10,aswellasthesubsidystandardforthe
recyclers, marked as p20. And then it publics these
standardsforthemanufacturersandrecyclerstohelp
themtomaketheirrecoveringdecisions.
RecoveringQuantityBidding
After the manufacturer i received the information
about the levying fee standard, it will decide how
many waste products it will transfer to the recyclers
for recovering according to Equ.9, and bids the
number qq02i to the government. Meantime, the
recyclerjwillalsodecidehowmanywasteproductsit
can recover, and also bid the number qsj0 to the
government.
StandardsAdjustment
Inthisprocess,thegovernmentadjustthelevyingfee
standard and subsidy standard according to the
numbers bided by the manufacturers and recyclers.
Theadjustmentwillbaseontherulecalibratedas,
Ifthetotaloftherecoveringwasteproductsbidedby
n
ofthewasteproductsthatthemanufacturerswantthe
m
levyingfeestandardandsubsidystandardaretoolow
to encourage the recyclers recovering behaviours, so
these two standards should be adjusted to be higher.
Defining the adjusting ratios are 10 and 20
respectively, the levying fee standard and subsidy
standard for the next stage negotiation should be
FIG.1THEMULTISTAGENEGOTIONATIONPROCESS
j 1
0
sj
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www.ijesci.orgInternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013
ElementsofGovernmentsBayesianLearningModel
calculatedby
q q
0
sj
j 1
i 1
0
g 2i
(16)
qg0 2i
i 1
1)LearningObjects
0
g 2i
is
2)PriorioriKnowledge
3)ConditionalKnowledge
When the government obtain the recovering
quantity bidded by the manufactuers and the
recyclers,itwillmakeacomparisonbetweenthese
two levels accoding to the rule described in Fig.1.
By this comparison the gorvenment can get a
knowledgeoftherangeofitslearningobjects,and
thisknowledgeistheconditionalknowledge.
BayesionLearningModel
The main role of the Bayesian learning model is to
help learners update the understanding of learning
objects by new information and use the new
knowledge for decisionmaking, so as to improve the
efficiency of negotiation. The update tool used is
Bayesianformula,definedas:
4)PosterioriKnowledge
Combining the posteriori knowledge and
conditional knowledge, the government can
update its understanding of the distribution of
levying fee standard and subsidy standard by the
Bayesian formula, and these updated knowledge
arecalledposterioriknowledge.
GovernmentsBayesianLearningProcess
(2) AiAj0,ij;
(3) Ai=;
ThentheBayesianformulacanbedefinedas:
P Ai / H
PH Ai P Ai
(17)
PH A P A
i 1
2],,[k1,k].WeuseeventA1todemonstratethat
p1* isintherangeof[0,1],andthesamedesignfor
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InternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013www.ijesci.org
k k 1
k 1
E p1*
P ( Ak )
(18)
TABLE1PARAMETERSOFRECOVERINGCOSTSANDRETURNS
Kinds
calculatedby
E p2*
L
l 1
l l 1
2
P( Al )
(19)
Manufacturer
E p1*
E p2*
The government will select
and
as
its levying fee standard and subsidy standardand
publish these numbers to the manufacturers and
recyclers.
Recycler
1
2
3
4
1
2
3
a
(1,000RM
B/Year)
2300
2100
3000
4200
3000
5500
3900
b
(1RMB/
unit)
100
120
90
80
70
60
65
c
(1RMB/
unit2)
38
49
45
31
29
51
38
r
(1RMB/
unit)
350
430
540
500
490
590
550
the
probabilities
are,
P( B1 ) 0.1,
expresstheconditionalprobabilities.
Made
by
the
TABLE2INITIALDECISIONOFMANUFACTURERSRECOVERING
DataDescription
It is assumed that the government is negotiating the
levying fee standard and subsidy standard with the
manufacturers and recyclers on a particular waste
electronic products. And the parameters of their
annual recovering costs and returns are shown in
Tab.1. Meanwhile, it is assumed that the waste
Serial
Serialof
Manufacturers
Selfrecovering
(1,000units)
1
2
3
4
Total
69.7
60.2
81.1
112.9
324.0
Recoveredby
Recyclers
(1,000units)
30.3
69.8
68.9
187.1
356.0
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www.ijesci.orgInternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013
TABLE3INITIALDECISIONOFRECYCLERSRECOVERING
Serialof
Recyclers
1
2
3
Total
ResultsAnalysis
Intended
Recovering
(1,000units)
108.6
78.4
99.3
286.4
Case3describesthatthegovernmentdidnottakeany
learning model to update its knowledge, and only
increase or decrease the standards by 3% in every
stage.
0
this is defined as the event H , which means that
that subsidy standard is too low to inspire the
recyclersrecoveringbehaviour,sothegovernment
needtoincreasethesubsidystandardandalsothe
levying fee standard. By this adjustment, it can be
inferred that the equilibrium levying fee standard
does not distribute in the range of A1 and A2, so
thecasethateventH0cannotappearwhenevents
TABLE4COMPARISONOFTHESIMULATIONRESULTS
Levying
Subsidy Recoveredby Recoveredby
Fee
Roundsof
Case
Standard Manufacturers Recyclers
Standard
Negotiation
(RMB/unit) (1,000units) (1,000units)
(RMB/unit)
P( H 0 A1 ) 0,
A1 and A2 happen, that is
P( H 0 A2 ) 0. It can be further estimated that
P( H 0 A3 ) 0.3, P( H 0 A4 ) 0.5, P( H 0 A5 ) 0.2.
Thesameinferringlinesareappliedforthesubsidy
standard and we can infer and estimate that
P( H 0 B1 ) 0, P( H 0 B2 ) 0, P( H 0 B3 ) 0.3,
352.28
352.28
310.5
319.5
Case2
358.93
351.19
316.1
319.0
Case3
365.34
352.29
312.9
319.4
10
P( H 0 B4 ) 0.5, P( H 0 B5 ) 0.2.thesearetheprior
Conclusions
230
Case1
(2)Themultistagenegotiationmechanismcanhelpthe
government to get more knowledge about the
InternationalJournalofEnergyScience(IJES)Volume3Issue3,June2013www.ijesci.org
180(2007):677691
Lijie Zhang, Yiwen Tian, Jing Yi. On Perfection of Ewaste
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ACKNOWLEDGMENT
PingshaHuang,DapengTan.Reuseandrecyclingofwaste
ThisworkarefinanciallysupportedbytheHighlevel
personnel Subsidy Scheme of Funding Project for
Academic Human Resources Development in
InstitutionsofHigherLearningUndertheJurisdiction
of Beijing Municipality (PRH20110514), 2011 special
planofBeijingMunicipalEducationCommission(The
circular economy system for constructing the world
urban in Beijing) and Beijing new century talents
engineering training project (Research on the
consumer safety knowledge service system based on
ontologytechnology).
China
Population,
Resources
and
Environment13(2003)103107
Wenbin Wang, Qingli Da. The DecisionMaking Model of
the Electronic Product Manufacturer about Collection
and Remanufacturing based on Premium and Penalty
Mechanism.ChineseJournalofManagementScience16
(2008):5763
WenshengHe,ZujunMa.TheBenefitsandResponsibilities
of the Principal Parts of Recycling Waste and Used
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