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We investigate the strategic interaction between the manufacturer's collection responsibility strategy (returns handled by the manufacturer or the e\u2010tailer) and the e\u2010tailer's complimentary return\u2010freight insurance strategy (whether to offer this insurance or not) in the presence of managerial optimism. It is found that the manufacturer's collection responsibility strategy creates the (implicit) incentive for the e\u2010tailer to offer complimentary return\u2010freight insurance. A high level of optimism and return handling costs expand the equilibrium range over which the manufacturer collects returns, and the e\u2010tailer offers complimentary return\u2010freight insurance. Contrary to conventional wisdom, we find that unilateral optimism does not always lead to a win\u2010win situation, but it can still result in suboptimal results on the other side. Finally, despite possibly high shipping costs, the e\u2010tailer's refusal to offer complimentary return\u2010freight insurance still benefits consumers, implying that managers with high optimism level benefit consumers.<\/jats:p>","DOI":"10.1111\/itor.13349","type":"journal-article","created":{"date-parts":[[2023,7,19]],"date-time":"2023-07-19T11:19:47Z","timestamp":1689765587000},"page":"2360-2397","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":5,"title":["Collection responsibility and freight insurance strategies for an e\u2010tailing supply chain in the presence of managerial optimism"],"prefix":"10.1111","volume":"32","author":[{"given":"Lingfei","family":"Yu","sequence":"first","affiliation":[{"name":"Center for Behavioral Decision and Control School of Management and Engineering Nanjing University Nanjing 210093 China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Tiaojun","family":"Xiao","sequence":"additional","affiliation":[{"name":"Center for Behavioral Decision and Control School of Management and Engineering Nanjing University Nanjing 210093 China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Peng","family":"Xu","sequence":"additional","affiliation":[{"name":"Center for Behavioral Decision and Control School of Management and Engineering Nanjing University Nanjing 210093 China"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2023,7,19]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3777"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.omega.2020.102337"},{"key":"e_1_2_9_4_1","unstructured":"Amazon 2023. 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