The Effect of Remanufacturer Entry on Manufacturer Pricing Decisions in Different Channel Power Structures

doi:10.3969/j.issn.1007-7375.2020.03.004

Abstract

Abstract: Considering three kinds of market structures: the manufacturer as market leader, the remanufacturer as market leader and there being no leader in the market. Based on the game theory, three models are developed to study the influence of channel power on decision-making. The results show: the influence of remanufacturing on manufacturer's profit is closely related to the value difference between remanufactured products and new products. In the three market structures with different channel power, when the product difference is large, the price of manufacturer and remanufacturer is the highest in the market dominated by manufacturer, at this time, the profit of both sides is the biggest; when the product difference is small, the price of both sides is the highest in the market dominated by remanufacturer and the profit is the largest. In addition, whether manufacturer or the remanufacturer has the lowest price and the lowest profit in the balanced market.

Key words: remanufacturing, channel power structure, Stackelberg game, Nash game

CLC Number:

F270

SHU Mi. The Effect of Remanufacturer Entry on Manufacturer Pricing Decisions in Different Channel Power Structures[J]. Industrial Engineering Journal, 2020, 23(3): 30-37.

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