Recyclage d’une ressource primaire et pouvoir de marché: le cas Alcoa

Bocar Samba Ba

Revue économique, 2022, vol. 73, issue 2, 303-324

Abstract: The purpose of this paper is threefold. First, it investigates the influence of the prospect of recycling on Alcoa?s per-period market power. Second, it analyzes whether or not Alcoa?s first period market power is affected when the resource constraint is binding. Third, it explores Alcoa?s price path in the presence of recycling. Toward these ends, we study a two-period Cournot framework in which Alcoa produces aluminum over two consecutive periods. In the second period, it engages in competition with a recycling sector. Our results run as follows. Firstly, the prospect of recycling increases Alcoa?s per-period market power. Secondly, the effect of recycling on Alcoa?s price change depends on the elasticities of demand. Thirdly, the association of the exhaustible character of the resource with recycling leads to a greater market power for Alcoa in the first period. Fourthly, Alcoa?s price can increase or decrease over time.

Keywords: market power; recycling; Cournot competition; capacity constraint (search for similar items in EconPapers)
Date: 2022
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