The Recycled Content Standard with Differentiated Products

摘要: Many countries recommend the use of a recycled content standard, however there are few studies investigating its design. In this paper, we analyze standard for differentiated products and derive optimal rate. particular, focus on two factors that affect firm’ s production activity. The first is quality product, which affected by rate content. second consumer’ s brand preference, affects market power. We find de pending marginal cost recycling, regulator sets high when degree horizontal product differentiation (HPD) small. Moreover, in such case, amount waste less than HPD large.