Competition between a manufacturer and a relicensing third party when customers are strategic

Qingyuan Zhu, Chenghao Yu, Zhiyang Shen and Malin Song

Managerial and Decision Economics, 2023, vol. 44, issue 4, 2021-2040

Abstract: This study presents an analytical framework for examining how remanufacturing rate, consumer buying behavior, and consumer preferences impact a supply chain's economic and environmental outcomes. An original equipment manufacturer and a third‐party remanufacturer make decisions influenced by the competitive leverage of relicensing fees and the maximum available quantity of remanufactured products. We analyze this monopoly scenario in a two‐period model, assuming that consumers are strategic. The remanufacturing rate has a nonmonotonic impact on the economic outcomes of this supply chain system, and excellent environmental improvement is not an inevitable consequence of a high remanufacturing rate.

Date: 2023
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https://doi.org/10.1002/mde.3798

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Working Paper: Competition between a manufacturer and a relicensing third party when customers are strategic (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2021-2040

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