The impact of customer returns in a supply chain with a common retailer
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A supply chain faces customer returns in which two competing manufacturers supply product to a common retailer.

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We show that an MBG is an equilibrium policy in the supply chain if the net salvage value is positive.

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MBGs benefit both the retailer and the new brand manufacturer, but hurt the well-known brand manufacturer.

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MBGs expands the overall market in the supply chain.

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