Durable goods with quality differentiation

C-Tier
Journal: Economics Letters
Year: 2008
Volume: 100
Issue: 2
Pages: 173-177

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

We study the optimal strategy of a durable-goods monopolist who can offer goods in different qualities. The key finding is that the presence of the additional sorting variable further undermines the firm's commitment problem, leading to results that contrast sharply with those of standard durable-goods models or those of models where the firm can commit.

Technical Details

RePEc Handle
repec:eee:ecolet:v:100:y:2008:i:2:p:173-177
Journal Field
General
Author Count
1
Added to Database
2026-01-25