A development of manufacturer-supplier game model for hazardous substances risk control in electronics industry

In recent years, the adoption of the Restriction of the Hazardous Substances (RoHS) directive has become widespread in the European Union (EU) and other developed countries due to the ever-increasing size of electronic wastes. This requires these countries have introduced a series of environmental directives, which enforces electrical and electronics industries to conduct source control and life-cycle management. The aim of these directives was to prevent the hazardous substances pollution and reduce electronic wastes. This paper proposes the application of the Game Theory to create a mixed-strategy static game model of electronic manufacturers and suppliers focusing on managing and controlling the hazardous substances risks exhibited in industrial suppliers. The analysis performed in the context of this model results in the optimal mixed-strategy Nash equilibrium. Based on the obtained result, this paper develops measures against the hazardous substances risk of suppliers for electronics manufacturers.