Remanufacturing, Third-Party Competition, and Consumers' Perceived Value of New Products

Agrawal, Vishal; Atasu, Atalay; Ittersum, Koert van

doi:10.2139/ssrn.1983342

Cited by 28 publications

(46 citation statements)

References 47 publications

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“…Using these results, he shows that (contrary to conventional wisdom) a firm should generally set a much lower price for their remanufactured products than the myopic price that ignores the presence of new products. Also leveraging behavioral results, Agrawal et al (2012) show that an Original Equipment Manufacturer (OEM) reduces the perceived quality of their new products when they remanufacture their own goods. However, they show that the perceived quality of an OEM's new products increases with the presence of a third-party remanufacturer.…”

Section: Forward Supply Chainmentioning

confidence: 99%

Sustainable Operations Management: An Enduring Stream, or Passing Fancy?

Drake¹,

Spinler

2013

SSRN Journal

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Section: Forward Supply Chainmentioning

confidence: 99%

Sustainable Operations Management: An Enduring Stream, or Passing Fancy?

Drake¹,

Spinler

2013

SSRN Journal

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“…Ferguson and Toktay [16] analyzed the competition between new and remanufactured products in monopoly and duopoly environments and found that a firm may choose to remanufacture or preemptively collect its used products to deter the entry of remanufacturers. However, Agrawal et al [17] demonstrated that the presence of third-party-remanufactured products can increase the perceived value of new products. Wu and Zhou [18] also found that competing OEMs without remanufacturing capacities sometimes benefit from the entry of IRs.…”

Section: Literature Reviewmentioning

confidence: 99%

To License or Not to License Remanufacturing Business?

Zhou

Ding

et al. 2018

Sustainability

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Many original equipment manufacturers (OEMs) face the choice of whether to license an independent remanufacturer (IR) to remanufacture their used products. In this paper, we develop closed-loop supply chain models with licensed and unlicensed remanufacturing operations to analyze the competition and cooperation between an OEM and an IR. The OEM sells new products and collects used products through trade-ins, while the IR intercepts the OEM's cores to produce remanufactured products and sell them in the same market. We derive optimal decisions for each of the two types of firms in licensed and unlicensed remanufacturing scenarios and identify conditions under which the OEM and the IR would be most likely to cooperate with each other in implementing remanufacturing. The results show although it is beneficial for an OEM to license an IR to remanufacture its cores, it is not always necessary for an IR to accept OEM's authorization. Moreover, we contrast the result for licensed remanufacturing scenario in the decentralized system with that in the centrally coordinated system to quantify potential inefficiency resulting from decentralization of decision making.

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“…Also leveraging behavioral results, Agrawal et al (2012) show that an original equipment manufacturer (OEM) reduces the perceived quality of their new products when they remanufacture their own goods. However, they show that the perceived quality of an OEM's new products increases with the presence of a third-party remanufacturer.…”

Section: Closed-loop Supply Chainmentioning

confidence: 99%

OM Forum—Sustainable Operations Management: An Enduring Stream or a Passing Fancy?

Drake

Spinler

2013

M&SOM

141

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Paul Kleindorfer was among the first to weigh in on and nurture the stream of sustainable operations management. The thoughts laid out here are based on conversations we had with Paul relating to the drivers underlying sustainability as a management issue: population and per capita consumption growth, the limited nature of resources and sinks, and the responsibility and exposure of firms to ensuing ecological risks and costs. We then discuss how an operations management lens contributes to the issue and criteria to help the sustainable operations management perspective endure. This paper relates to a presentation delivered by Morris Cohen for Paul's Manufacturing and Service Operations Management Distinguished Fellows Award, given at Columbia University, June 18, 2012. We wrote this paper at Paul's request.

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Remanufacturing, Third-Party Competition, and Consumers' Perceived Value of New Products

Cited by 28 publications

References 47 publications

Sustainable Operations Management: An Enduring Stream, or Passing Fancy?

Sustainable Operations Management: An Enduring Stream, or Passing Fancy?

To License or Not to License Remanufacturing Business?

OM Forum—Sustainable Operations Management: An Enduring Stream or a Passing Fancy?

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