Highlights Collaborative extended producer responsibility (CPR) law uses product recovery to fulfil manufacturers' EPR. This study examines how CPR regulation affects OEM and independent remanufacturer competitive and collaborative business strategies (IRs). We designed a two-period competitive and collaborative model to analyse OEM and IR remanufacturing and pricing tactics in an oligopoly market. Implications of government subsidies on optimal remanufacturing and price decisions for competitive and collaborative models under CPR laws are investigated. The findings help OEMs of identical products from developing a lucrative business model under CPR regulation.

    Abstract 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.


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    Title :

    Is it wise to compete or to collaborate? Remanufacturing business models under collective extended producer responsibility legislation


    Contributors:
    De, Arijit (author) / Ray, Ankita (author) / Kundu, Tanmoy (author) / Sheu, Jiuh-Biing (author)


    Publication date :

    2023-09-21




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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