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Should Manufacturer Adopt Cross‐Brand Trade‐In Strategy in Cooperation With Recycling Platform?

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  • Bin Zheng
  • Sijie Li
  • Wenli Xiao

Abstract

This study explores whether manufacturers should independently implement same‐brand trade‐ins or collaborate with recycling platforms for cross‐brand trade‐ins within a concurrent sale and resale framework. In the former strategy, trade‐ins are restricted to manufacturers' branded products, while the latter imposes no such limitations. Our findings reveal that manufacturers prefer cross‐brand trade‐ins due to factors such as reduced market share, high collection costs, or product durability. Interestingly, manufacturers with sufficiently low market share benefit from cross‐brand trade‐ins, irrespective of collection costs. From a market perspective, same‐brand trade‐ins are advantageous when used‐product durability is relatively high; otherwise, cross‐brand trade‐ins are more effective.

Suggested Citation

  • Bin Zheng & Sijie Li & Wenli Xiao, 2025. "Should Manufacturer Adopt Cross‐Brand Trade‐In Strategy in Cooperation With Recycling Platform?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2929-2944, July.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:5:p:2929-2944
    DOI: 10.1002/mde.4514
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