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Potential competition in the Solid Waste disposing market: A theoretical study

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  • Francesco Silvestri

Abstract

The article focuses on the Municipal Waste sector, dealing with the openness conditions of a non-regulated disposal segment. We use a simplified version of a model introduced by Massarutto and Silvestri (2015), to sketch a model of competition between an innovative Outsider (a WtE incinerator) and a traditional Incumbent (a landfill). Taking inspiration from Massarutto (2007), we verify the inefficiency of a limit pricing strategy, demonstrating that, under particular assumptions, the Incumbent will not be able to deter the entry of the Outsider. In line with some of the latest theoretical contributions and policy recommendations, this result claims for a relaxing of the Municipal Waste management regulation, at least in the disposal sector.

Suggested Citation

  • Francesco Silvestri, 2018. "Potential competition in the Solid Waste disposing market: A theoretical study," L'industria, Società editrice il Mulino, issue 1, pages 89-104.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/90439:y:2018:i:1:p:89-104
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