Singh, N
(2015)
The Value of Competition in Remanufacturing.
Working Paper.
Scheller College of Business, Georgia Tech.
(Submitted)
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Abstract
In line with the general perception among practitioners, the extant literature on remanufacturing shows that an OEM’s profit suffers when a third-party remanufacturer competes with the OEM’s remanufacturing operations. Accordingly, the literature recommends ways to deter third-party competition. However, competition for acquisition of used products (or product cores) can influence the price of new products because strategic (forward-looking) consumers consider the resale
value of new products when making their purchase decisions. In our model, an OEM offers a new
product that depreciates over time. The OEM has an opportunity to acquire and remanufacture depreciated used products and remarket the remanufactured products. A third-party remanufacturer also competes with the OEM for acquisition and remanufacturing of the used products. We investigate the impact of competition from the third-party remanufacturer on the OEM’s profit in the presence of strategic consumers. Of specific interest is whether competition from the third-party remanufacturer is always undesirable for the OEM when they face strategic consumers
| Affiliation: |
Indian School of Business
|
| ISB Creators: |
| ISB Creators | ORCiD |
|---|
| Singh, N | UNSPECIFIED |
|
| Item Type: |
Monograph
(Working Paper)
|
| Uncontrolled Keywords: |
Closed-Loop Supply Chain; Remanufacturing; Competition; Product Returns; Strategic Consumers; Secondhand Markets |
| Subjects: |
Operations Management |
| Depositing User: |
Mohan Dass
|
| Date Deposited: |
09 Apr 2019 09:49 |
| Last Modified: |
09 Apr 2019 09:49 |
| URI: |
http://eprints.exchange.isb.edu/id/eprint/786 |
| Publisher URL: |
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| Related URLs: |
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