Conventional wisdom suggests that competition from a third-party remanufacturer lowers the original equipment manufacturer (OEM)’s profits. In this paper, we show that this may not hold for the remanufacturing competition when the presence of remanufactured products affects the consumers’ perceived value of new products. We introduce two new effects of remanufacturing: (1) third-party remanufacturer (TPR)’s remanufactured products shift the consumer valuation of new products upward, and (2) OEM’s remanufactured products shift the valuation downward. By comparing two alternatives of OEM, i.e., take part in remanufacturing or not, we demonstrate a new benefit of TPR competition. It helps the OEM to exploit the valuation of new product customers. Our results suggest that taking part in remanufacturing does not necessarily benefit an OEM. When TPR remanufactured products have low impact on consumers’ perceived value of new products, and only if the remanufacturing cost is sufficiently low, it is profitable for an OEM to engage in remanufacturing. Otherwise, remanufacturing may reduce profits for the OEM and in this case, the OEM should leave remanufacturing to the TPR. Therefore, facing with TPR competition, understanding the interactions between remanufacturing and perceived value of new products is important to an OEM. In addition, we find that low fraction of used products is not always bad for the TPR, and a high willingness-to-pay for the OEM’s remanufactured products may be harmful for the OEM.

中文翻译：

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第三方再制造一定对原始设备制造商有害吗？

传统观点认为，来自第三方再制造商的竞争会降低原始设备制造商 (OEM) 的利润。在本文中，我们表明，当再制造产品的存在影响消费者对新产品的感知价值时，这可能不适用于再制造竞争。我们介绍再制造的两个新效应：（1）第三方再制造商（TPR）的再制造产品使消费者对新产品的估值向上移动，以及（2）OEM 的再制造产品使估值向下移动。通过比较OEM的两种选择，即是否参与再制造，我们展示了TPR竞争的新优势。它帮助 OEM 开发新产品客户的价值。我们的结果表明，参与再制造并不一定会使 OEM 受益。当TPR再制造产品对消费者对新产品的感知价值影响较小，且再制造成本足够低时，OEM厂商进行再制造是有利可图的。否则，再制造可能会降低 OEM 的利润，在这种情况下，OEM 应将再制造留给 TPR。因此，面对TPR竞争，理解再制造与新产品感知价值之间的相互作用对OEM来说很重要。此外，我们发现低比例的二手产品并不总是对 TPR 不利，对 OEM 再制造产品的高支付意愿可能对 OEM 有害。OEM 从事再制造是有利可图的。否则，再制造可能会降低 OEM 的利润，在这种情况下，OEM 应将再制造留给 TPR。因此，面对TPR竞争，理解再制造与新产品感知价值之间的相互作用对OEM来说很重要。此外，我们发现低比例的二手产品并不总是对 TPR 不利，对 OEM 再制造产品的高支付意愿可能对 OEM 有害。OEM 从事再制造是有利可图的。否则，再制造可能会降低 OEM 的利润，在这种情况下，OEM 应将再制造留给 TPR。因此，面对TPR竞争，理解再制造与新产品感知价值之间的相互作用对OEM来说很重要。此外，我们发现低比例的二手产品并不总是对 TPR 不利，对 OEM 再制造产品的高支付意愿可能对 OEM 有害。