Differentiated Durable Goods Monopoly: A Robust Coase Conjecture
نویسندگان
چکیده
منابع مشابه
Durable–Goods Monopoly with Varying Demand
This paper solves for the profit maximising strategy of a durable–goods monopolist when incoming demand varies over time. Each period, additional consumers enter the market; these consumers can then choose whether and when to purchase. We first characterise the consumer’s utility maximisation problem and, under a monotonicity condition, show the profit maximising allocation can be solved throug...
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متن کاملOnline Appendix – Durable Goods Monopoly with Stochastic Costs
The proof of Theorem 2 is organized as follows. First, I show that the lower bound L(x, q) (i.e., the value function of the optimal stopping problem (15)) is well defined for all q ∈ [0, 1]. Then I show that the monopolist's equilibrium profits are equal to L(x, q) for all states (x, q).
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This paper investigates the efficiency of innovation investment in durable goods monopoly under a threat of entry. It is well known that the durability causes time inconsistency to the durable goods monopolist, which in turn provides a competitive pressure. When entry threat exists, the durability of the product endows the monopolist with the power to deter entry since the current sales alter t...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2018
ISSN: 1556-5068
DOI: 10.2139/ssrn.2745961