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Chinese Journal of Management Science ›› 2013, Vol. ›› Issue (1): 149-156.

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Research on Remanufacturing Entry Decision Based on WTP Differentiation

GUO Jun-hua1,2, LI Bang-yi2, NI Ming1   

  1. 1. School of Economics and Management, East China Jiaotong University, Nanchang 330013, China;
    2. School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China
  • Received:2010-11-24 Revised:2012-08-27 Online:2013-02-28 Published:2013-02-26

Abstract: There are differences in the consumer’s willingness-to-pay for remanufactured products and new products. On this basis, the boundary conditions of the OEM remanufacturing decision-making in the competitive environment and no competitive environment are studied. The results show that OEM will obtain more profit in entering remanufacturing when boundary conditions are satisfied, because the remanufactured products’ profitability can make up the canalization effect of remanufactured products to new products. Meanwhile, through numerical simulation, the effects of various parameters on the OEM’s and competitor’s productivity and profit are analyzed.

Key words: remanufacturing, WTP differentiation, competition, entry decision

CLC Number: