Abstract:As enterprises competition has been replaced by supply chain competition, supply chain dominant modes of manufacturer-led and retailer-led are given. By using the game theory, the relationship of wholesale price and recycling subsidy is studied, and the relationship of subsidy setting and the retail decision-making, supply chain efficiency and stability are analyzed under different supply chain dominant modes. Finally, a supply chain coordination method is proposed based on the opportunity cost by comparing the cooperation decision-making and independent decision-making.