Strategic Interactions Between OEMs and Third-Party Remanufacturers in Closed-Loop Supply Chains: A Multi-Model Analysis Under Trade-in Policies

Strategic Interactions Between OEMs and Third-Party Remanufacturers in Closed-Loop Supply Chains: A Multi-Model Analysis Under Trade-in Policies | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Strategic Interactions Between OEMs and Third-Party Remanufacturers in Closed-Loop Supply Chains: A Multi-Model Analysis Under Trade-in Policies Qinghua Zhang, Xinwen Ren, Jiaxin Tian, Shuwei Jing This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7733025/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 7 You are reading this latest preprint version Abstract With the rise in consumer spending and accelerated product iterations, the surge in waste products has made remanufacturing under trade-in programs a critical driver of high-quality economic development. In closed-loop supply chains (CLSCs), Original Equipment Manufacturers (OEMs) face strategic dilemmas: while developing new products, they must decide how to collaborate with Third-Party Remanufacturers (TPRs) in recycling and remanufacturing, balancing recovery costs, technological constraints, cooperation models, and government policies.This study addresses three theoretical gaps in existing literature: the lack of integration of multi-dimensional factors, insufficient analysis of OEM-TPR strategic interactions, and under exploration of trade-in policies’ nuanced impacts. To fill these gaps, we construct five strategic models differing in recovery responsibility and cooperation modes, systematically analyzing how remanufactured product pricing, outsourcing costs, licensing fees, and government subsidies influence strategic choices and profitability. Key findings reveal: (1) OEMs prioritize licensing fees and outsourcing costs when selecting cooperation modes, with threshold effects determining switches between in-house and TPR collaboration; (2) OEMs and consumers uniformly prefer the OEM recovery-outsourcing (MRo) model, while TPRs’ preferences depend on their R&D efficiency; (3) Government subsidies exhibit a threshold effect: higher subsidies incentivize OEMs to adopt MRa or MRo, while lower subsidies favor RRa or RRo; (4) The relationship between recovery volume and OEM profits is parabolic, highlighting the need for strategic balance; (5) Aligning environmental taxes and subsidies requires integrating stakeholder interests across the CLSC. This research advances CLSC theory by developing a multi-model framework that quantifies OEM-TPR interactions under trade-in policies, providing a theoretical basis for OEMs’ strategic decisions and guiding evidence-based policy design. Future research should explore dynamic models in complex CLSC structures. Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Reviewers agreed at journal 20 May, 2026 Reviewers agreed at journal 22 Mar, 2026 Reviewers agreed at journal 16 Mar, 2026 Reviewers invited by journal 04 Nov, 2025 Editor assigned by journal 04 Nov, 2025 Submission checks completed at journal 17 Oct, 2025 First submitted to journal 28 Sep, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7733025","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":542141593,"identity":"6ac34669-b7e3-4f2e-856d-957bf36e8913","order_by":0,"name":"Qinghua Zhang","email":"","orcid":"","institution":"shanxi university of finance and economic","correspondingAuthor":false,"prefix":"","firstName":"Qinghua","middleName":"","lastName":"Zhang","suffix":""},{"id":542141594,"identity":"1676853b-faf3-4f14-9360-411b7ec5d6b4","order_by":1,"name":"Xinwen Ren","email":"","orcid":"","institution":"shanxi university of finance and 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