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...

Fundamental information resembles in many respects a durable good. Hence, the effects of its incorporation into stock prices depend on who is the agent controlling its flow. Like a durable goods monopolist, a monopolistic analyst selling information intertemporally competes against herself. This forces her to partially relinquish control over the information flow to traders. Conversely, an insi...

This paper presents a microfounded model of money where durable assets serve as a guarantee to repay consumption loans. We establish steady state equilibria where money and bank credit coexist. In such an equilibrium, a larger investment in durable capital relaxes the borrowing constraint faced by consumers and thus provides a way to mitigate their costs of money holdings. We show that the occu...

People often consume non-durable goods in a way that seems inconsistent with preferences for smoothing consumption over time. We suggest that such patterns of consumption can be better explained if one takes into account the future utility flows generated by memorable consumption goods—goods, such as a honeymoon or a vacation, whose utility flow outlives their physical consumption. We consider ...

Game theory is an efficient tool to represent and conceptualize the problems concerning conflict and competition. In recent years and especially for durable products, competition between domestic and foreign brands for gaining market share has received a considerable attention. This paper study electronic commerce concepts by differential game theory and introduce a novel and comprehensive mode...

Satisficing behavior is one of the most important subjects in consumer behavior studies. Satisficing consumers select any affordable bundle of items with utility larger than their satisfaction threshold. This contrasts to maximizing behavior, where the consumer selects the bundle of items with the highest possible utility within his or her budget constraint. The authors hypothesize that, all el...