How Collection Cost Structure Drives a Manufacturer’s Reverse Channel Choice Atalay Atasu Scheller College of Business, Georgia Institute of Technology, 800 West Peachtree St. NW, Atlanta, GA 30332. Tel: 404-894-4928; Fax: 404-894-6030; Email: atalay.atasu@scheller.gatech.edu L. Beril Toktay Scheller College of Business, Georgia Institute of Technology, 800 West Peachtree St. NW, Atlanta, GA 30332. Tel: 404-385-0104; Fax: 404-894-6030; Email: beril.toktay@scheller.gatech.edu Luk N. Van Wassenhove INSEAD, Boulevard de constance, 77300, Fontainebleau France Tel: +33 160-72-4266; Email: luk.van-wassenhove@insead.edu July 26, 2012 Forthcoming in Production and Operations Management Abstract This note discusses the impact of collection cost structure on the optimal reverse channel choice of manufacturers who remanufacture their own products. Using collection cost functions that capture collection rate and collection volume dependency, we show that the optimal reverse channel choice (retailer- versus manufacturer-managed collection) is driven by how the cost structure moderates the manufacturer’s ability to shape the retailer’s sales and collection quantity decisions. Key words: Closed-Loop Supply Chain; Reverse Logistics; Remanufacturing; Channel Choice Original submission: June 2010; Revised versions submitted: July 2011, May 2012, July 2012; Acceptance: July 2012.