Pricing decision for remanufactured and refurbished products about WEEE

This paper discusses the pricing decision about the remanufacture rate and subsidies rate for remanufacturing and refurbishing to returned WEEE (Waste Electrical and Electronic Equipment). We define and analyze a model of an industry comprised of a remanufacturer to remanufacture and refurbish returned products. According to the cost of remanufacturing, refurbishing and the valuation ratio of refurbished product to remanufactured product value, the remanufacturer can choose the optimal remanufacture rate to get the optimal profit. In pricing decision, the price difference of subsidies to remanufactured product is smaller than subsidies to refurbished product. When subsidies rate increases, the pricing competition of subsidies to remanufactured product will be looser, and the pricing competition of subsidies to refurbished product will be tighter.