Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover

Table 2

Notations and definitions used in the model.

j	Products, j = new (the new product), old (the old product), renting (rent the new product from the manufacturer), idle (share the idle product from the owner)
	Price of product j
c	New/old products production cost
r	New product’s rental cost
t	Idle product’s transaction cost
	Consumer’s valuation for purchasing the new product
φ	Renter’s acceptance of the used product,
β	Product’s durability,
ε	Salvage value of the new/old product
Uj	Consumer’s utility of choosing product j
dj	Demand of product j
πM	Manufacturer’s profit
πO	Owner’s earnings
N-SR	No product sharing under single rollover, denoted as a superscript N-SR
N-DR	No product sharing under dual rollover, denoted as a superscript N-DR
S-SR	Product sharing under single rollover, denoted as a superscript S-SR
S-DR	Product sharing under dual rollover, denoted as a superscript S-DR