Pricing decisions for new and remanufactured products considering market risk

The remanufacturer/manufacturer will face some market risks when he sells the new and remanufactured products in the same market. There are two cases in the same market: Case I, the remanufactured product is indistinguishable from the new product; Case II, the remanufactured product is distinguishable from the new product. The different case has the different market risks. In this paper, we focus on the pricing decisions for new and remanufactured products considering the market risks in the same market. Based on the market risks, the optimal selling prices of the new and remanufactured products were given. In the end of the paper, a numerical example is given to illustrate the optimal results.