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

Thomas Vallee, Gino Baudry () and Patrice Guillotreau
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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

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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.

Keywords: Multi-market Cournot Game; Waste management; recycling; Coproduction (search for similar items in EconPapers)
Date: 2017-09-22
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01591879v1
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