Title: Regional diffusion for remanufactured tied products in ecologically conscious consumers

Authors: Yenming J. Chen

Addresses: Department of Logistics Management, National Kaohsiung 1st University of Science & Technology, 2 Jhuoyue Road, Nanzih District, Kaohsiung City 811, Taiwan

Abstract: In this paper, we demonstrate that independent aftermarket replacement component remanufacturers are able to help the host product manufacturers establish their market share. We employ agent-based simulation and evolutionary game theory in the light of innovative diffusion process with network externality and sustainability consciousness, in microscopic and dynamic emergent perspectives. We suggest a strategic decision management insight for better marketing an environmental sustainable product in a new product diffusion process. We show that both market share and long-term profitability of a tied product firm, with inferior market share, indeed can be raised significantly by applying the suggested price-protection-distribution decision strategy at specific timing when the ecologically conscious consumer segment grows.

Keywords: sustainable economy; environmental sustainability; technology adoption; replicator dynamics; agent-based modelling; complex system simulation; regional diffusion; remanufactured tied products; ecologically conscious consumers; agent-based systems; multi-agent systems; component remanufacturing.

DOI: 10.1504/IJSE.2011.042798

International Journal of Sustainable Economy, 2011 Vol.3 No.4, pp.440 - 454

Published online: 04 Oct 2011 *

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