Price Decisions for Used-Products Considering Its Impact on New-Product-Demand

According to a questionnaire survey, the collecting price of the used-product will affect the demand of the new product. In order to study the price decisions of the used-product considering its impact on the new-product-demand, an influence coefficient in new-product-demand function is introduced. The optimal price decisions of the used-products, including the manufacturerpsilas reclaiming price and the retailerpsilas collecting price, are presented by game theory. A numerical example is shown to analyze the relationship of the optimal results and the influence coefficient. The numerical results show that the profits of the manufacturer and the retailer will increase even though the reclaiming price and the collecting price increase when the influence coefficient increases. Moreover, the demand increase of the new product indicates there will be an increase of the used-products in future period. As a result, a benign cycle which the manufacturer and the retailer expected will come true.