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.
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- Inderst, Roman, 2003.
"Durable Goods with Quality Differentiation,"
CEPR Discussion Papers
4047, C.E.P.R. Discussion Papers.
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- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
- David Levhari & Yoram Peles, 1973. "Market Structure, Quality and Durability," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 235-248, Spring.
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- 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.
- Roland Strausz, 2009. "Planned Obsolescence as an Incentive Device for Unobservable Quality," Economic Journal, Royal Economic Society, vol. 119(540), pages 1405-1421, October.
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