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- W3144589766 abstract "Marketing, operations management, and economics researchers have been interested in the conditions under which returns policies may coordinate channels and supply chains (Pasternack 1985; Marvel and Peck 1995; Padmanabhan and Png 1995; Kandel 1996; Tsay 2001; Cachon and Lariviere 2002; Granot and Yin 2002). Padmanabhan and Png (1997) showed that with demand uncertainty, a returns policy could improve manufacturer profitability under certain conditions. They further claimed that, even in the absence of end-user demand uncertainty, a returns policy could raise manufacturer profitability by dampening price competition between retailers. However, this claim was disproved by Wang (2003), who showed that returns policies do not change manufacturer profitability when demand is certain and retailing is competitive. In this paper, we show that return s policies do increase manufacturer profitability by attenuating price competition between retailers, but, that this effect holds only in the presence of end-user demand uncertainty. Interestingly, the conditions under which a returns policy raises the manufacturer's profit are weaker when retailing is a duopoly than when retailing is a monopoly. This suggests that returns policies serve" @default.
- W3144589766 created "2021-04-13" @default.
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- W3144589766 date "2004-01-01" @default.
- W3144589766 modified "2023-09-28" @default.
- W3144589766 title "Returns Policies and Retail Price Competition" @default.
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