Monopoly distortions in durability and multi-dimensional quality
Without a multiplicative interaction between durability and other quality attributes Swan's (1970) independence result is violated, even with constant marginal costs. Subsequent distortions are aligned when the marginal cost of quality does not increase too much with durability.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Levhari & Yoram Peles, 1973. "Market Structure, Quality and Durability," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 235-248, Spring.
- Peter L. Swan, 1970. "Market Structure and Technological Progress: The Influence of Monopoly on Product Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 84(4), pages 627-638.
- E. Kleiman & T. Ophir, 1966. "The Durability of Durable Goods," Review of Economic Studies, Oxford University Press, vol. 33(2), pages 165-178.
- Inderst, Roman, 2003.
"Durable Goods with Quality Differentiation,"
CEPR Discussion Papers
4047, C.E.P.R. Discussion Papers.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
- Roland Strausz, 2009. "Planned Obsolescence as an Incentive Device for Unobservable Quality," Economic Journal, Royal Economic Society, vol. 119(540), pages 1405-1421, October.
- E. Sieper & P. L. Swan, 1973. "Monopoly and Competition in the Market for Durable Goods," Review of Economic Studies, Oxford University Press, vol. 40(3), pages 333-351.
- Chi, Woody Chih-Yi, 1999. "Quality choice and the Coase problem," Economics Letters, Elsevier, vol. 64(1), pages 107-115, July.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:105:y:2009:i:3:p:333-335. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.