Joint pricing and production decisions for new and remanufactured products

This paper studies a two-period model in which a monopolistic manufacturer needs to decide the quantity of new products in the first period, as well as the selling price and quantity of remanufactured products in the second period, in order to maximize his total profit. The market size is fixed and the market segmentation is realized by the consumer´s net utility. We focus on the competition between new and remanufactured products, and provide the manufacturer´s optimal pricing and production strategies with respect to different parameter settings.