The Limits of Planned Obsolescence for Conspicuous Durable Goods
نویسندگان
چکیده
منابع مشابه
The Limits of Planned Obsolescence for Conspicuous Durable Goods
An extensive body of literature argues for the benefits of planned obsolescence, the strategy of designing products with low durability to induce repeat purchases from the consumers. Yet, some firms avoid planned obsolescence and instead offer products with high durability. In this paper, we offer a demand-side rationale for a high-durability product design strategy: exclusivity-seeking consume...
متن کاملObsolescence of Durable Goods and Optimal Consumption
A durable purchased at time t 2 [0;1) provides a constant service ow x0 in the interval [t; t + 1]. The price of the durable is reduced periodically: it is equal to p = p0=(1 + ) in the period of time [ ; + 1), 2 N, where 0. Assume that the interest rate equal to the rate of time preference: r = . Consider a consumer that at date t = 0 has no durable and a lifetime wealth w. His optimization p...
متن کاملObsolescence of durable goods and optimal purchase timing
Article history: Received 25 November 2013 Received in revised form 17 June 2015 Available online 13 July 2015 JEL classification: O33 O31 E22
متن کاملCompetitive planned obsolescence
The incentives that durability offers to a monopolist to price discriminate over time and the related difficulties that secondhand markets create in these situations have been well recognized in the economics literature. The conventional problem for the monopolist is that, having sold a durable good, there is an incentive to reduce price later to bring into the market those consumers who would ...
متن کاملThe Design of Durable Goods
T use of a durable good is limited by both its physical life and usable life. For example, an electric-car battery can last for five years (physical life) or 100,000 miles (usable life), whichever comes first. We propose a framework for examining how a profit-maximizing firm might choose the usable life, physical life, and selling price of a durable good. The proposed framework considers differ...
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ژورنال
عنوان ژورنال: Manufacturing & Service Operations Management
سال: 2016
ISSN: 1523-4614,1526-5498
DOI: 10.1287/msom.2015.0554