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- W2167562342 abstract "The existing literature on the of recycling on a virgin producer’s market power assumes that the entire output of the recyclable product produced in any period is available to the recycling flrms as scrap in a subsequent period. The consumers’ decision whether to participate in recycling or not is, however, not modelled. Instead it is implicitly assumed that all consumers sort the recyclable product from their household garbage. We relax this assumption in Swan’s (Journal of Political Economy, 1980) model. When recycling requires consumers to undertake costly sorting activities to separate scrap from household garbage, they will participate only if the net reward from sorting is positive. With heterogeneous consumers difiering in terms of their sorting cost, the entire output of the recyclable product may not be subsequently available as scrap to the recycling flrms. This has implications for the virgin producer’s monopoly power, and may also lead to multiple equilibria if the network efiect of sorting is su‐ciently large. The latter result suggests a role for the government in in∞uencing equilibrium selection to improve social welfare, for example by encouraging more recycling." @default.
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- W2167562342 date "2006-05-01" @default.
- W2167562342 modified "2023-09-27" @default.
- W2167562342 title "Recycling with endogenous consumer participation" @default.
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