Recycling With Endogeneous Consumer Participation

Soham Baksi and Ngo Van Long

CIRANO Working Papers from CIRANO

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.

Keywords: dominant firm; multiple equilibria; network effect; recycling; effet de réseau; firme dominante; multiplicité d’équilibres; recyclage (search for similar items in EconPapers)
JEL-codes: D4 L1 Q2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 2006-05-01
View list of references

Downloads: (external link)
http://www.cirano.qc.ca/pdf/publication/2006s-08.pdf (application/pdf)

Related works:
Working Paper: RECYCLING WITH ENDOGENEOUS CONSUMER PARTICIPATION (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cir:cirwor:2006s-08

Access Statistics for this paper

More papers in CIRANO Working Papers from CIRANO
Contact information at EDIRC.
Series data maintained by Webmaster ().