Article ID Journal Published Year Pages File Type
5110410 Transportation Research Part E: Logistics and Transportation Review 2017 16 Pages PDF
Abstract
Under the coexistence of “trade old for new” (TON) and “trade old for remanufactured” (TOR) programs, we study a firm's optimal pricing decisions and identify the thresholds that determine whether the firm should offer TON and TOR simultaneously. The result shows that adopting two kinds of trade-ins simultaneously does not necessarily benefit the firm and that the firm should use different trade-in schemes under different conditions. Moreover, we extend the model to the case with budget constraints on the TOR subsidy. The result shows that the firm's profit decreases when the actual TOR quantity exceeds the upper limit.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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