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This paper examines the relationship between a quantity discount strategy and a return policy by means of a three-stage game approach. In the first stage, the manufacturer considers how to employ a quantity discount strategy and/or a return policy. If he decides to employ a quantity discount strategy, in the second stage the manufacturer will ask the retailer to order the quantity which provides an optimal stocking level for joint profits. The buyback price is also determined by negotiationdoi:10.1080/02522667.2006.10699717 fatcat:2ymmobffv5dd7a3v3ogbyko4hm