A Selected Survey of Game Theory Models with Government Schemes to Support Circular Economy Systems

Abstract

This paper reviews the public schemes and mechanisms available for firms to activate and successfully organize circular economy settings. Because of the nature of such negotiated incentives, we focus this survey on game theory models and emphasize three main fields: (1) analysis of public schemes proposed by governments to sponsor the formation of circular economy systems; (2) investigation of government actions in sponsoring these schemes, which can either be active or passive; and (3) analysis of circular economy options used in game theory with government interventions, linked to the waste pyramid framework. Within these fields, we identify six research gaps that future research can address to contribute to this domain’s knowledge. Furthermore, by crossing these three dimensions, we derive 200 possible fields that can be populated with future research and emphasize the ones that require more contributions from researchers in the future.