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Competitive Planned Obsolescence

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Author Info

  • Paul A. Grout

    ()
    (University of Bristol and CMPO)

  • In-Uck Park

    ()
    (University of Bristol and CMPO)

Abstract

We provide a model of planned obsolescence in a competitive market. A feature of the model is that there are configurations where a firm cannot survive in the competitive market unless its product exhibits planned and known obsolescence. This form of obsolescence is complementary to that of existing models and arises from the ability of planned obsolescence to minimize the lemons problem.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 36 (2005)
Issue (Month): 3 (Autumn)
Pages: 596-612

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Handle: RePEc:rje:randje:v:36:y:2005:3:p:596-612

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Cited by:
  1. Eric BROUILLAT (GREThA, CNRS, UMR 5113), 2011. "Durability of consumption goods and market competition: an agent-based modelling," Cahiers du GREThA 2011-31, Groupe de Recherche en Economie Théorique et Appliquée.
  2. Jong-Hee Hahn & Jin-Hyuk Kim, 2012. "Monopoly R&D and Compatibility Decisions in Network Industries," Working papers 2012rwp-43, Yonsei University, Yonsei Economics Research Institute.

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