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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-01591879v1
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    References listed on IDEAS

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