Obsolescence of Durable Goods and Optimal Purchase Timing

B-Tier
Journal: Review of Economic Dynamics
Year: 2015
Volume: 18
Issue: 4
Pages: 752-773

Authors (2)

Ennio Stacchetti (not in RePEc) Dmitriy Stolyarov (University of Michigan)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a model with a durable good subject to periodic obsolescence and analytically characterize the optimal purchasing policy. The key result is that consumers optimally synchronize new purchases with the innovation cycle. The model simultaneously explains coordinated adoption without invoking network effects and provides a theoretical underpinning for a diffusion curve that features a temporary adoption slowdown. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:13-270
Journal Field
Macro
Author Count
2
Added to Database
2026-01-29