TY - JOUR
T1 - Is it wise to compete or to collaborate? Remanufacturing business models under collective extended producer responsibility legislation
AU - De, Arijit
AU - Ray, Anita
AU - Kundu, Tanmoy
AU - Sheu, Jiuh-Biing
PY - 2023/11/1
Y1 - 2023/11/1
N2 - Collective extended producer responsibility (CPR) legislation aims to accomplish manufacturers’ extended producer responsibility (EPR) through a common channel of product recovery activities. This work intends to study the impact of the CPR legislation system on competitive and collaborative business models of original equipment manufacturers (OEMs) and independent remanufacturers (IRs). Therein, we developed a two-period competitive and collaborative model considering an oligopoly market scenario for analysing optimal remanufacturing and pricing strategies of OEMs and IRs. Government subsidies promote the remanufacturing activities, and their effects are examined on optimal remanufacturing and pricing decisions for competitive and collaborative models under CPR legislation. The result highlights that competition with IRs under the CPR legislation system within oligopoly market scenarios is profitable for OEMs. Furthermore, the result indicates that a competitive business model increases consumer surplus, increasing used products collection and remanufacturing. The findings benefit OEMs of identical products from implementing a profitable business model under CPR legislation to restrict the availability of low-quality remanufactured products of IRs, thereby protecting the brand image and controlling the cannibalization effect on new products selling.
AB - Collective extended producer responsibility (CPR) legislation aims to accomplish manufacturers’ extended producer responsibility (EPR) through a common channel of product recovery activities. This work intends to study the impact of the CPR legislation system on competitive and collaborative business models of original equipment manufacturers (OEMs) and independent remanufacturers (IRs). Therein, we developed a two-period competitive and collaborative model considering an oligopoly market scenario for analysing optimal remanufacturing and pricing strategies of OEMs and IRs. Government subsidies promote the remanufacturing activities, and their effects are examined on optimal remanufacturing and pricing decisions for competitive and collaborative models under CPR legislation. The result highlights that competition with IRs under the CPR legislation system within oligopoly market scenarios is profitable for OEMs. Furthermore, the result indicates that a competitive business model increases consumer surplus, increasing used products collection and remanufacturing. The findings benefit OEMs of identical products from implementing a profitable business model under CPR legislation to restrict the availability of low-quality remanufactured products of IRs, thereby protecting the brand image and controlling the cannibalization effect on new products selling.
KW - Collective extended producer responsibility
KW - Competition and collaboration
KW - Game theory
KW - Remanufacturing business
KW - Supply chain management
UR - http://www.scopus.com/inward/record.url?scp=85173565171&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/23403e67-ec41-3c3d-982c-e892bcc651b2/
U2 - 10.1016/j.tre.2023.103294
DO - 10.1016/j.tre.2023.103294
M3 - Article
SN - 1366-5545
VL - 179
JO - Transportation Research. Part E: Logistics and Transportation Review
JF - Transportation Research. Part E: Logistics and Transportation Review
M1 - 103294
ER -