Abstract: The Internet recycling mode is still in infancy and developing stage in China. The public has low awareness of the Internet recycling platform and seldom uses the platform when disposing of wastes. In order to improve the recovery rate of the Internet recycling platform, game theory is used to analyze the cooperation of Internet recycling platform in closed loop supply chain, which is also based on the cooperation extension form of online travel agencies and hotels. In this article, supply chain system consists of a manufacturer, an online retailer, and a third-party recycler is assumed. The manufacturer uses raw materials to produce new products, and uses the old products recycled by the third-party recycler to produce remanufactured products. The online retailer is responsible for selling products, meanwhile, it takes full advantage of its own popularity to promote the third-party recycler’s Internet recycling platform to the consumers. The third-party recycler promotes the Internet recycling platform and uses it to recycle old products. A mathematical model is proposed to investigate the optimal cooperative promotion mode for a manufacturer.

Key words: Internet recycling platform; cooperative promotion; compensation; closed-loop supply chain