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In this paper we apply a leader(s)-followers model to show the eect of a competitive
fringe of recyclers over a mining oligopoly. For the mining rms, we point out a tradeo
between market share and market power. A more competitive virgin sector reduces
the share of the secondary supply but at a cost of a lower market power regarding the
downstream industry. Besides, we show the existence of an optimal number of a mining
rms that would push recyclers out of the market supply. Regarding the recycling activity,
a technology threshold is required to enter the market and a higher one to ensure a lower
market power compared to a situation without recycling. Finally, we consider that a
public policy aiming at fostering the secondary sector would only be ecient by adressing
simultaneously both the eciency of recycling and the availability of scrap.
