Under Dual Channel Environment, A Quality-Based Price Competition Model For The WEEE Recycling Market

摘要

Recently in emerging countries, there have both formal and informal sectors to process waste electrical and electronic equipment (WEEE). Normally, the formal channel consists of recyclers with official qualifications for disassembling WEEE, meanwhile the informal channel is dominated by unregulated recyclers. In this study, we create a quality-based price competition model for the WEEE recycling market to comprise the formal and informal sectors. The results indicate that government subsidy can help the development of the formal sector at a higher quality level of waste, when the quality of waste is high but the government subsidy is not substantial, the informal sector always has a competitive advantage.