In this paper, we study how two important determinants of recycling costs, economies of scale and material-stream homogeneity, influence endogenous recycling coalition formation. On one hand, strong economies of scale make the coalitions typically larger, due to fixed-cost savings. On the other...

Rather than organizing disposal of consumer-generated waste themselves, many states and countries have passed legislation that makes producers responsible for the proper disposal (i.e., recycling) of the products they bring to the market. We study the stability of producers' strategies emerging...