Modeling competitive market of remanufactured products

Although remanufacturing is effective for increasing resource efficiency, its market share is very small in some developing countries. For analyzing market conditions for remanufacturing, this paper proposes a market model to be incorporated in Life Cycle Simulation by employing polynomial logit model. This model successfully simulated market competition among new, remanufactured, and refurbished products. The results suggest the possibility of diffusion of remanufactured products if the circulating system is well established. Polynomial logit model is effective for discussing policy, life cycle design, and product design, since it can map customers' preference to the attributes of products through the utility function.