Abstract
PurposeThis paper explores how the existence of a second-hand market can affect remanufacturing decisions for durable goods in the presence of patent protection.Design/methodology/approachThe authors construct a dynamic decision model between a durable goods original manufacturer and a durable goods remanufacturer considering the characteristics of the multi-cycle uses of new durable goods and remanufactured durable goods.FindingsThe results show that (1) the second-hand market compresses the cost space of a durable goods original manufacturer and a remanufacturer; (2) when the second-hand market exists, the optimal pricing of new durable goods is reduced, the optimal pricing of remanufactured durable goods is increased and the patent cost of each unit of durable goods increases and (3) the presence of the second-hand market will increase the original manufacturer's and remanufacturer's profits.Originality/valueThe research conclusion has certain reference value for the production strategy selection of each enterprise in the process of patented product remanufacturing and the government's fiscal policy formulation at each stage of the remanufacturing industry's development.
Subject
Computer Science (miscellaneous),Social Sciences (miscellaneous),Theoretical Computer Science,Control and Systems Engineering,Engineering (miscellaneous)