Abstract: Consumer's willingness-to-pay for remanufactured products is less than their willingness-to-pay for new products. On this basis,we establish a two-period model of a manufacturer who makes and sells a new product and a remanufactured product simultaneously. We study two pricing schemes:uniform price for all products,price differentiation between new and remanufactured products. In this setting,we discuss the optimal product return rates and pricing strategy. Meanwhile,through theoretical analysis and numerical simulation,we explore the effect of various parameters on the manufacturer's profit and the return rate of used product.

Key words: reverse logistics, pricing, heterogeneous, remanufacturing