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

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  • Qingyuan Zhu
  • Chenghao Yu
  • Zhiyang SHEN
  • Malin Song

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.

Suggested Citation

  • Qingyuan Zhu & Chenghao Yu & Zhiyang SHEN & Malin Song, 2023. "Competition between a manufacturer and a relicensing third party when customers are strategic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2021-2040, June.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2021-2040
    DOI: 10.1002/mde.3798
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