IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-01591879.html
   My bibliography  Save this paper

To discard or to coproduce by recycling waste: An output constraint analysis

Author

Listed:
  • Thomas Vallée

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

  • Gino Baudry

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

  • Patrice Guillotreau

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

This paper investigates a multi-market Cournot model where a particular firm may be present in a secondary market by recycling its waste as coproducts. We show the conditions under which the recycling strategy is optimal for the firm, thus creating coproduction and co-value. Unlike the usual models found in the literature based on costs and potential economies of scope, our model associates the relationship between the two goods as a new technological constraint for production. We show that an optimal percentage of recycling the waste as a new coproduct exists and depends on the structural conditions of the two markets.

Suggested Citation

  • Thomas Vallée & Gino Baudry & Patrice Guillotreau, 2017. "To discard or to coproduce by recycling waste: An output constraint analysis," Working Papers halshs-01591879, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01591879
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01591879
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-01591879/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ahmed, E. & Elettreby, M.F., 2014. "Controls of the complex dynamics of a multi-market Cournot model," Economic Modelling, Elsevier, vol. 37(C), pages 251-254.
    2. Subhadra, Bobban G. & Edwards, Mark, 2011. "Coproduct market analysis and water footprint of simulated commercial algal biorefineries," Applied Energy, Elsevier, vol. 88(10), pages 3515-3523.
    3. Heggestad, Arnold A & Rhoades, Stephen A, 1978. "Multi-Market Interdependence and Local Market Competition in Banking," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 523-532, November.
    4. Zhu, Liandong, 2015. "Biorefinery as a promising approach to promote microalgae industry: An innovative framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1376-1384.
    5. Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-481, August.
    6. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    7. Corwin D. Edwards, 1955. "Conglomerate Bigness as a Source of Power," NBER Chapters, in: Business Concentration and Price Policy, pages 331-359, National Bureau of Economic Research, Inc.
    8. George J. Stigler, Chairman, Universities-National Bureau Committee for Economic Research, 1955. "Business Concentration and Price Policy," NBER Books, National Bureau of Economic Research, Inc, number univ55-1.
    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. Hans Degryse & Steven Ongena, 2004. "The Impact of Competition on Bank Orientation and Specialization (new titel: The impact of competition on bank orientation)," CESifo Working Paper Series 1119, CESifo.
    2. Degryse, Hans & Ongena, Steven, 2007. "The impact of competition on bank orientation," Journal of Financial Intermediation, Elsevier, vol. 16(3), pages 399-424, July.
    3. de Haas, Ralph & Lu, Liping & Ongena, S.R.G., 2018. "Clear and Close Competitors? : On the Causes and Consequences of Bilateral Competition between Banks," Other publications TiSEM e9f86045-13c5-49d9-85df-1, Tilburg University, School of Economics and Management.
    4. Arie, Guy & Markovich, Sarit & Varela, Mauricio, 2017. "On the competitive effects of multimarket contact," European Economic Review, Elsevier, vol. 100(C), pages 116-142.
    5. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Yahua, 2020. "Is multimarket contact an antitrust concern? A case of China’s airline market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 515-526.
    6. Degryse, H.A. & Ongena, S., 2003. "The Impact of Competition on Bank Orientation and Specialization," Discussion Paper 2003-108, Tilburg University, Center for Economic Research.
    7. Cruz-García, Paula & Fernández de Guevara, Juan & Maudos, Joaquín, 2021. "Bank competition and multimarket contact intensity," Journal of International Money and Finance, Elsevier, vol. 113(C).
    8. Ma, Hao, 1998. "Mutual forbearance in international business," Journal of International Management, Elsevier, vol. 4(2), pages 129-147, October.
    9. Faouzi Bensebaa, 2003. "La dynamique concurrentielle:défis analytiques et méthodologiques," Revue Finance Contrôle Stratégie, revues.org, vol. 6(1), pages 5-37, March.
    10. Villena, Marcelo J. & Araneda, Axel A., 2017. "Dynamics and stability in retail competition," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 134(C), pages 37-53.
    11. Murakami, Hideki & Asahi, Ryota, 2011. "Multimarket Contact And Market Power: A Case Of The U.S. Airline Industry," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 45(1), pages 81-88, October.
    12. Yahua Zhang & David Round, 2009. "Policy Implications of the Effects of Concentration and Multimarket Contact in China’s Airline Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 307-326, June.
    13. Zhang, Yahua & Round, David K., 2011. "Price wars and price collusion in China's airline markets," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 361-372, July.
    14. Jin, Tuofu & Eapen, Alex, 2022. "‘Delayed Forbearance’: Multipoint contact and mutual forbearance in inaugural and subsequent competitive actions," Journal of Business Research, Elsevier, vol. 149(C), pages 938-953.
    15. Ma, Hao, 1999. "Determinants of strategic options in multinational market competition," Journal of International Management, Elsevier, vol. 5(2), pages 93-113.
    16. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Yahua, 2019. "An analysis of price competition and price wars in Australia's domestic airline market," Transport Policy, Elsevier, vol. 81(C), pages 163-172.
    17. Linde, Sebastian & Siebert, Ralph B., 2023. "Exploring the incremental merger value from multimarket and technology arguments," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    18. Byford, Martin C. & Gans, Joshua S., 2014. "Collusion at the extensive margin," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 75-83.
    19. Yu-Ching Chiao, 2014. "Country risk, multimarket contacts and MNEs' competitive action," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 6(4), pages 329-350.
    20. Goldstein, Adam & Haveman, Heather A., 2010. "Press and Pulpit: The Growth of Religious Magazines in Antebellum America," Institute for Research on Labor and Employment, Working Paper Series qt8f39r0mv, Institute of Industrial Relations, UC Berkeley.

    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:hal:wpaper:halshs-01591879. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.