讲座题目：Title: Trade-in for Cash or for Upgrade? Dynamic Pricing with Customer Choice
主持人： 白春光 授课
Trade-in programs for electronics products, e.g., mobile phones, have been increasingly popular. These programs target at customers (we call them "bargainers") who seek to salvage or upgrade their old devices. There are two widely adopted trade-in options: trade-in-for-upgrade and trade-in-for-cash. In this paper, we consider a firm who offers both trade-in options, i.e., a hybrid trade-in program, to acquire old products, then refurbishes and resells them, together with new product over a finite selling horizon. The bargainers choose which option to trade in their products while new customers decide whether to buy a new product or a refurbished one. When the selling price of new products is exogenous, we derive the optimal trade-in prices of old product and resale price of refurbished product. We show that the optimal trade-in and resale policies are of a threshold-type and trade-in-for-upgrade should be offered with a premium refund (compared to trade-in-for-cash) only in early periods of the selling horizon. We further consider two variants of the base model. In the first, the new product has a fixed amount of initial inventory and is not replenishable during the selling horizon. One different finding is that the firm may still offer a premium refund for trade-in-for-upgrade in the later periods of the selling horizon. In the second, the firm also sets the new product price. We show that when the customer sensitivity of product quality follows a uniform distribution, it is optimal for the firm to set the new product price at a constant level during the entire horizon, regardless of the refurbished product's inventory level. Finally, our numerical results demonstrate that the hybrid trade-in program could generate significantly more profit than either upgrade-only or cash-only trade-in program.
肖勇波，清华大学经济管理学院管理科学和工程系教授。2000年获清华大学管理信息系统学士学位，2006年获清华大学管理科学和工程硕士和博士学位。目前兼任清华大学现代管理研究中心主任助理及兼职研究员，当国际学术期刊《Journal of Systems Science and Systems Engineering》的Managing Editor；凡是教育部长江学者青年学者（2016）、国家自然科学基金优秀青年基金（2012）和中华管理学青年奖（2014）的获得者。重要研究领域包括收益和定价管理、供应链管理、劳动管理等；学论文发表于《Production and Operations Management》、《Decision Sciences》、《Naval Research Logistics》、《IIE Transactions》相当国际学术期刊。