Abstract: Aiming at the pricing of the original equipment manufacturer (OEM) and the independent operator (IO) on remanufactured products in competitive environment, a twoperiod model was developed considering consumers′ heterogeneity of the demand for new and remanufactured products. The optimal collection rate and optimal price were obtained and compared under the conditions that the OEM selling new products and remanufactured products with same price or different prices. Finally the effect of parameters on the profits of the OEM and the IO was discussed by numerical examples. The conclusions state that if the OEM sets uniform price for all products，the price of remanufactured products is higher and the quantity greater and the OEM and the IO make more profit. The results mean that even with the competition of the IO, the OEM setting uniform price for all products is better than setting different prices for new and remanufactured products.