Abstract:  For some products, there are both newly manufactured ones and remanufactured ones. Thus, a retailer should decide whether it should sell both types of products or just sell the newly manufactured ones. To answer this question, a Stackelberg game model is derived for it. By using this model, optimal pricing policy is analyzed for both marketing strategies. Comparison is made by using numerical simulation on the degree of consumer acceptance to the remanufactured products in considering the price, quality, and retailer’s equilibrium profit. It is shown that the retailer is more profitable under optimal pricing if it sells both types of products.

Key words: remanufacturing, Stackelberg game, optimal pricing