Should Manufacturer Adopt Cross‐Brand Trade‐In Strategy in Cooperation With Recycling Platform?

Bin Zheng, Sijie Li and Wenli Xiao

Managerial and Decision Economics, 2025, vol. 46, issue 5, 2929-2944

Abstract: This study explores whether manufacturers should independently implement same‐brand trade‐ins or collaborate with recycling platforms for cross‐brand trade‐ins within a concurrent sale and resale framework. In the former strategy, trade‐ins are restricted to manufacturers' branded products, while the latter imposes no such limitations. Our findings reveal that manufacturers prefer cross‐brand trade‐ins due to factors such as reduced market share, high collection costs, or product durability. Interestingly, manufacturers with sufficiently low market share benefit from cross‐brand trade‐ins, irrespective of collection costs. From a market perspective, same‐brand trade‐ins are advantageous when used‐product durability is relatively high; otherwise, cross‐brand trade‐ins are more effective.

Date: 2025
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https://doi.org/10.1002/mde.4514

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:46:y:2025:i:5:p:2929-2944

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