IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Controling externalities with asymmetric information : Ferrous Scrap Recycling and the Gold Rush Problem

  • Ignace Adant

    (CECO - Laboratoire d'econometrie de l'école polytechnique - CNRS - Polytechnique - X)

  • Pierre Fleckinger

    (CECO - Laboratoire d'econometrie de l'école polytechnique - CNRS - Polytechnique - X)

We develop a model of the monopsonistic organization of a ferrous scrap recycling branch. Negative externalities in the collection activity and information asymmetries on scrap quality are the distinctive features of the branch. After shedding light on the gold rush problem - the interplay between the collection externalities and the price of the good - we explain how a monopsonistic recycling firm regulates the market for scrap collection. The strategic use of expertise transfer to its suppliers is the recycler’s control lever to overcome the potential gold rush externalities. The social consequences of this informational solution are inquired stressing a strong equity vs efficiency dilemma, even more pervasive when accounting for the environmental dimension.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://hal.archives-ouvertes.fr/hal-00243017/document
Download Restriction: no

Paper provided by HAL in its series Working Papers with number hal-00243017.

as
in new window

Length:
Date of creation: 2005
Date of revision:
Handle: RePEc:hal:wpaper:hal-00243017
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00243017
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. William E. Schworm, 1983. "Monopsonistic Control of a Common Property Renewable Resource," Canadian Journal of Economics, Canadian Economics Association, vol. 16(2), pages 275-87, May.
  2. Baland, Jean-Marie & Platteau, Jean-Philippe, 1997. "Coordination problems in local-level resource management," Journal of Development Economics, Elsevier, vol. 53(1), pages 197-210, June.
  3. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
  4. Newbery, David M G, 1975. "Congestion and Over-exploitation of Free Access Resources," Economica, London School of Economics and Political Science, vol. 42(167), pages 243-60, August.
  5. Colin W. Clark & Gordon R. Munro, 1980. "Fisheries and the Processing Sector: Some Implications for Management Policy," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 603-616, Autumn.
  6. Edward Sherwood Meade, 1897. "The Production of Gold Since 1850," Journal of Political Economy, University of Chicago Press, vol. 6, pages 1.
  7. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  8. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
  9. Clay, Karen & Wright, Gavin, 2005. "Order without law? Property rights during the California gold rush," Explorations in Economic History, Elsevier, vol. 42(2), pages 155-183, April.
  10. Richard Cornes & Charles F. Mason & Todd Sandler, 1986. "The Commons and the Optimal Number of Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 641-646.
  11. Robert H. Haveman, 1973. "Common Property, Congestion, and Environmental Pollution," The Quarterly Journal of Economics, Oxford University Press, vol. 87(2), pages 278-287.
  12. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
  13. Aggarwal, Rimjhim M. & Narayan, Tulika A., 2004. "Does inequality lead to greater efficiency in the use of local commons? The role of strategic investments in capacity," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 163-182, January.
  14. Greif, Avner & Milgrom, Paul & Weingast, Barry R, 1994. "Coordination, Commitment, and Enforcement: The Case of the Merchant Guild," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 745-76, August.
  15. Stiglitz, Joseph E, 1976. "Monopoly and the Rate of Extraction of Exhaustible Resources," American Economic Review, American Economic Association, vol. 66(4), pages 655-61, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00243017. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.