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Congratulations to Javad Nasiry,聽Professor in Operations Management who was awarded a 2022-2023 SSHRC Insight Development Grant

鈥淎nalytical Models for Electronics Waste Management鈥�

Replacement purchases constitute the majority of sales in markets for new consumer electronics. Manufacturers of such products increasingly opt to offer trade-ins rather than upgrades to frame their replacement sales. A rational consumer model suggests the two are equivalent. The goal of this proposal is to develop a behavioral model that accounts for the disparity in the owners鈥� and the buyers鈥� valuations for secondhand products (i.e., the endowment

effect) as well as reference dependence in evaluating a replacement offer. The endowment effect renders the consumer-to-consumer exchange of the secondhand products inefficient and lets the firm control the secondary market more effectively by supplying the collected used products. Our behavioral model will explain why trade-ins are more profitable than upgrades.

Supported in part by funding from the .

En partie financ茅 par le Conseil de recherches en sciences humaines.