Abstract:In order to compare the effects of government subsidy and reward-penalty mechanism on the supply chain,three kinds of models are established according to Stackberg game, they are supply chain models, which without government participation, under government subsidies mechanism and under the reward-penalty mechanism. The paper analyzes the effects of these mechanisms and conducts a comparative study. The results show that, subsidies and incentive mechanisms can effectively stimulate the supply chain recovery enthusiasm, and the recyclers are the biggest beneficiaries; manufacturer''s profits depend on the price of reward-penalty or the subsidy; compared with the subsidies mechanism, the reward-penalty mechanism has a higher return rate and the whole supply chain efficiency.