To discard or to coproduce by recycling waste: An output constraint analysis
Résumé
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.
Domaines
Economies et financesOrigine | Fichiers produits par l'(les) auteur(s) |
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