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

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.