Dynamic Demand for New and Used Durable Goods without Physical Depreciation Masakazu Ishihara Doctor of Philosophy Joseph L. Rotman School of Management University of Toronto 2011 This thesis studies the interaction between new and used durable goods without physical depreciation. In product categories such as CDs/DVDs and video games, the competition from used goods markets has been viewed as ...

T act of trading in a used car as partial payment for a new car resonates with practically all consumers. Such transactions are prevalent in many other durable goods markets, ranging from golf clubs to CT scanners. What roles do trade-ins play in these markets? What motivates the seller to set up a channel to facilitate trade-ins? Intuitively, accepting a trade-in would appear to stimulate dema...

This paper uses a model of durable good purchase and usage to estimate the longrun effect of energy rates on residential energy demand. Whereas previous attempts to estimate energy demand have predominantly taken durable good portfolios as given, this model endogenizes durable good holdings with a model in which households consider the tradeoff between purchase cost and operating cost in decidi...

Abstract In this paper, I explore the effects nominal rigidities and monetary policies have on the generation of Pigou cycles, that is, business cycles driven by agents’ expectations of future technology. The optimal response of the central bank is analyzed under circumstances when agents receive a signal indicating the technology change in the future. To achieve these objectives, I introduce n...

Product differentiation in durable-goods markets is often complicated by the fact that decision processes for the market participants are intrinsically dynamic. For example, consumers can employ a variety of consumption patterns with actions that vary in time, even for a single brand of goods. Transaction costs in selling used goods prompt consumers to think ahead in order to avoid adverse lock...

We analyze a model of multi-period monopoly in durable goods. Taking into consideration the special conditions of software markets, we assume that there are no used software markets and that manufacturers stop selling older software when they introduce a replacement model. We show that nominal as well as discounted (real) prices decrease over time but are above cost, thereby violating the Coase...

Theory suggests the financial decisions of durable goods makers can impose externalities on their consumers. Namely, the consumption stream that durable goods provide frequently depends on services provided by the manufacturer itself (e.g., warranties, spare parts availability, maintenance and upgrades). Bankruptcy of a manufacturer, or even the possibility thereof, threatens this service provi...

Using data from 2001–2012, the effects of IKEA entry in four Swedish municipalities, 2004–2007, on labor productivity in durable goods retailing is investigated using synthetic control methods. We contribute to the literature on synthetic control methods by considering parametric specifications of the intervention effect, which in our case arguably improves the likelihood of identifying the int...

Real household consumption in the United Kingdom increased by about 4% during 2001. This was the sixth consecutive year of above-average growth—the longest above-trend period over the past five decades (see Chart 1). During the second half of the 1990s, consumer spending was boosted by robust growth in households' real disposable incomes, as well as strong gains in household wealth, particularl...