Quality Decision of Remanufactured Products Based on Information Asymmetry

• 1、College of Management and Economics, Tianjin University,Tianjin 300072

Abstract：Considering the recycling and remanufacturing background of electronic products and consumer type information asymmetry, we explores the quality decision in a supply chain that consists of a recycling platform and a remanufacturer. And then we explores the impact of information structure on the profits of supply chain members. By solving signaling game, we find that when consumer types are high heterogeneous, natural separation equilibrium happens, and the remanufacturer will choose high-quality products if and only if the refurbishment cost of low-quality products is low and that of high-quality products is moderate. When consumer types are less heterogeneous, there will always be a distorted separation equilibrium, and only if the probability of high-type consumers is large, remanufacturers will choose high-quality products. In addition, the impact of information structure on platform and remanufacturer is different. Due to the distortion of the equilibrium strategy, asymmetric information may damage the platform (information superiority party) and benefit the remanufacturer.

Keywords： Remanufacturing Quality selection Asymmetry information Signaling game