IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2006s-08.html
   My bibliography  Save this paper

Recycling With Endogeneous Consumer Participation

Author

Listed:
  • Soham Baksi
  • Ngo Van Long

Abstract

We show that the cost of sorting and the network effects jointly determine the rate of participation of consumers in the process of recycling. The dominant producer of virgin material takes into account the recycling activities when it makes its pricing decision. The network effects can create multiplicity of steady-state equilibria. The government can improve welfare by influencing equilibrium selection. On montre que le coût de triage et les effets de réseau déterminent le taux de participation des consommateurs au processus de recyclage. La firme dominante tient compte des activités de recyclage en choisissant le prix du produit primaire. Les effets de réseau peuvent créer la multiplicité d'équilibres stationnaires. Le gouvernement peut améliorer le bien-être social par son influence sur le choix d'équilibres.

Suggested Citation

  • Soham Baksi & Ngo Van Long, 2006. "Recycling With Endogeneous Consumer Participation," CIRANO Working Papers 2006s-08, CIRANO.
    • Handle: RePEc:cir:cirwor:2006s-08
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2006s-08.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
    2. Gaskins, Darius Jr., 1974. "Alcoa revisited: The welfare implications of a secondhand market," Journal of Economic Theory, Elsevier, vol. 7(3), pages 254-271, March.
    3. Valerie Y. Suslow, 1986. "Estimating Monopoly Behavior with Competitive Recycling: An Application to Alcoa," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 389-403, Autumn.
    4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    5. Swan, Peter L, 1980. "Alcoa: The Influence of Recycling on Monopoly Power," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 76-99, February.
    6. Grant, Darren, 1999. "Recycling and market power: A more general model and re-evaluation of the evidence1," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 59-80, January.
    7. Gérard Gaudet & Ngo Van Long, 2003. "Recycling Redux: A Nash–Cournot Approach," The Japanese Economic Review, Japanese Economic Association, vol. 54(4), pages 409-419, December.
    8. Hollander, Abraham & Lasserre, Pierre, 1988. "Monopoly and the preemption of competitive recycling," International Journal of Industrial Organization, Elsevier, vol. 6(4), pages 489-497.
    9. Martin, Robert E, 1982. "Monopoly Power and the Recycling of Raw Materials," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 405-419, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soham Baksi & Ngo Van Long, 2009. "Endogenous Consumer Participation And The Recycling Problem," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 281-295, December.
    2. Ba, Bocar Samba & Soubeyran, Raphael, 2023. "Hotelling and recycling," Resource and Energy Economics, Elsevier, vol. 72(C).
    3. Bocar Samba BA, 2017. "Recycling of a Primary Resource and Market Power: The Alcoa Case," Working Papers 2017.27, FAERE - French Association of Environmental and Resource Economists.
    4. Sylvain Sourisseau & Jean De Beir & Thai Ha Huy, 2017. "The effect of recycling over a mining oligopoly," Documents de recherche 17-05, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    5. Bocar Samba Ba & Philippe Mahenc, 2019. "Is Recycling a Threat or an Opportunity for the Extractor of an Exhaustible Resource?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1109-1134, August.
    6. Ba, Bocar Samba & Combes-Motel, Pascale & Schwartz, Sonia, 2020. "Challenging pollution and the balance problem from rare earth extraction: how recycling and environmental taxation matter," Environment and Development Economics, Cambridge University Press, vol. 25(6), pages 634-656, December.
    7. Sylvain Sourisseau & Jean De Beir & Thai Ha Huy, 2019. "The effect of recycling over a mining oligopoly: competition for market shares, collusion for market power within a Cournot-Stackelberg model," Documents de recherche 19-01, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    8. De Beir, Jean & Fodha, Mouez & Magris, Francesco, 2010. "Life Cycle Of Products And Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 14(2), pages 212-230, April.
    9. Paul Belleflamme & Huan Ha, 2024. "Improving Recycling: How Far Should We Go?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(7), pages 1993-2033, July.
    10. Grant, Darren, 1999. "Recycling and market power: A more general model and re-evaluation of the evidence1," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 59-80, January.
    11. Zhou, Sophie & Smulders, Sjak, 2021. "Closing the loop in a circular economy: Saving resources or suffocating innovations?," European Economic Review, Elsevier, vol. 139(C).
    12. Jean de Beir & Mouez Fodha & Guillaume Girmens, 2007. "Recyclage et externalités environnementales. Faut-il subventionner les activités de récupération recyclage ?," Revue économique, Presses de Sciences-Po, vol. 58(3), pages 609-617.
    13. Jean de Beir & Mouez Fodha & Guillaume Girmens, 2007. "Recycling and Environmental Externalities: Should Recycling Be Subsidized? [Recyclage et externalités environnementales : Faut-il subventionner les activités de récupération recyclage ?]," Post-Print halshs-00144632, HAL.
    14. Liu, Ting & Albert Ma, Ching-to & Mak, Henry Y., 2018. "Incentives for motivated experts in a partnership," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 296-313.
    15. Håkan J. Holm & Victor Nee & Sonja Opper, 2020. "Strategic decisions: behavioral differences between CEOs and others," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 154-180, March.
    16. Liliane Giardino-Karlinger, 2016. "Vertical Relations in the Presence of Competitive Recycling," Journal of Industry, Competition and Trade, Springer, vol. 16(1), pages 25-49, March.
    17. Anderson, Simon P. & Ginsburgh, Victor A., 1994. "Price discrimination via second-hand markets," European Economic Review, Elsevier, vol. 38(1), pages 23-44, January.
    18. Canan Savaskan & Charles J. Corbett, 2001. "Contracting and Coordination in Closed-Loop Supply Chains," Discussion Papers 1327, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Knut Einar Rosendahl & Diana Roa Rubiano, 2019. "How Effective is Lithium Recycling as a Remedy for Resource Scarcity?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 985-1010, November.
    20. Toshiaki Iizuka, 2007. "An Empirical Analysis of Planned Obsolescence," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(1), pages 191-226, March.

    More about this item

    Keywords

    dominant firm; multiple equilibria; network effect; recycling; effet de réseau; firme dominante; multiplicité d'équilibres; recyclage;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2006s-08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.