Leasing versus Selling and Firm Efficiency in Oligopoly
AbstractWe examine sales and leasing of a durable good in an asymmetric duopoly. We find that inefficient firms tend to lease more. While the low cost firm sells more than the high cost firm, the high cost firm leases more. Further, an increase in unit costs implies a higher ratio of leased units to sales. This pattern is reversed when the unit cost decreases significantly over time.
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Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 99-07.
Date of creation: 1999
Date of revision:
Publication status: Published in ECONOMICS LETTERS, Vol. 66, 2000, pages 361-368
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Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
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Other versions of this item:
- Saggi, Kamal & Vettas, Nikolaos, 2000. "Leasing versus selling and firm efficiency in oligopoly," Economics Letters, Elsevier, vol. 66(3), pages 361-368, March.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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