We consider the steady-state equilibrium of an industry characterized by simultaneous decision-making between a produder of a primary good devides on the quality of the virgin product he will produce, and the producer of a perfectly substitutable, but more costly, recycled product, who decides on the fraction of the primary production he will recycle.
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Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number
9910.