A Theory of Finitely Durable Goods Monopoly with Used-Goods Market and Transaction Costs

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S. Huang ; Y. Yang ; K. Anderson (2001)
  • Journal: Management Science, volume 47, issue 11 November, pages 1,515-1,532
  • Related identifiers: doi: 10.1287/mnsc.47.11.1515.10250
  • Subject: Durable Goods, Transaction Costs, Leasing and Selling, Intertemporal Price Discrimination, Markov Perfect Equilibrium

We construct a dynamic game to model a monopoly of finitely durable goods. The solution concept is Markov-perfect equilibria with general equilibria embedded in every time period. Our model is flexible enough to simultaneously explain or accommodate many commonly observ... View more
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