Abstract: On the consideration of recycling, this paper initially demonstrates the collaborative model that a manufacturer distributes the product which comes from a remanufacturer. Firstly, we get the optimal price decisions of the remanufacturer and the manufacturer. Secondly, we get the optimal price decisions in the competitive model. Finally, through numerical simulation, we compare the two models from the perspective of the equilibrium price, sale volume, return rate of used products and the profit, and get the precondition that the firm chooses the collaborative model.

Key words: collaborative model, competitive model, profits of manufacturer, profits of remanufacturer