Abstract
Because of the climate change, environmental protection attracts a lot of attention. Many countries establish green regulations and ask companies to take their responsibility. For example, European Union requires return rate of seventy five percent for large electronics, fifty percent for small appliances and sixty five percent for consumer electronics. In this research, two two-period models are developed to discuss how cannibalization between new and remanufactured product impacts the prices of new and remanufactured products and the recycle fee. The objective is to maximize the profit given that the recycle quantity meets government requirement. In the first model, the price of the new product in the first period is assumed given by the market. The company does not have enough bargaining power to set its own price. In the second models, the price of the new product in the first period is a decision variable. The closed form solutions of both models are found. The managerial insights are derived and discussed based on these closed form solutions.