Innovation frequency of durable complementary goods
نویسندگان
چکیده
منابع مشابه
Selling and Leasing Strategies for Durable Goods with Complementary Products
It has been recognized that when a durable goods manufacturer sells her output, she has an incentive to produce at a rate that will drive down the market price of her product over time. Because anticipation of declining prices makes consumers less willing to invest in owning the durable good, selling can be self-defeating for the manufacturer. If instead, the manufacturer leases her product, sh...
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In some markets, firms can price-discriminate across consumers based on their purchasing history. In particular, when firms introduce an innovation to their product, they may offer an upgrade price to their former customers, and a switching price to poach some consumers from their rivals. In this paper I examine the existence of an equilibrium with consumer poaching in a durable-good market cha...
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Adurable-goods monopolist who will be introducing new and improved versions of his product must decide how to price his products, keeping in mind the relative attractiveness of the current and future products. Dhebar (1994) has shown that if technology is changing too quickly and the producer cannot credibly commit to future prices and quality, then no equilibrium strategy exists. That is, ther...
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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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Is the variety of products supplied in markets a reflection of the diversity of consumers’ preferences? In this paper, we argue that the distribution of durable goods offered in markets tends to be compressed relative to the distribution of consumers’ underlying preferences. In particular, there are strong incentives for conformity in markets for durable goods. The reason for conformity is natu...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2012
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2012.08.004