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Time preference and the welfare effects of tie-in sales

  • Heubrandner, Florian
  • Skiera, Bernd

This paper shows for B2C tie-in sales with a monopoly or competition in the durable market that tying increases welfare for the likely case that consumers exhibit higher discount rates than firms.

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File URL: http://www.sciencedirect.com/science/article/B6V84-50C71NH-2/2/aad975b093506dc5ceac138d86964d7a
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 108 (2010)
Issue (Month): 3 (September)
Pages: 314-317

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Handle: RePEc:eee:ecolet:v:108:y:2010:i:3:p:314-317
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. David L. Kaserman, 2007. "Efficient Durable Good Pricing And Aftermarket Tie-In Sales," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 533-537, 07.
  2. Severin Borenstein & Jeffrey MacKie-Mason & Janet Netz, 1996. "Exercising Market Power in Proprietary Aftermarkets," Working Papers _002, University of California at Berkeley, Haas School of Business.
  3. Mandy, David M, 1991. "Competitive Two-Part Tariffs as a Response to Differential Rates of Time Preference," Economica, London School of Economics and Political Science, vol. 58(231), pages 377-89, August.
  4. Zhiqi Chen & Thomas Ross & W. Stanbury, 1998. "Refusals to Deal and Aftermarkets," Review of Industrial Organization, Springer, vol. 13(1), pages 131-151, April.
  5. Whinston, Michael D, 1990. "Tying, Foreclosure, and Exclusion," American Economic Review, American Economic Association, vol. 80(4), pages 837-59, September.
  6. Ulrich Kamecke, 1998. "Tying Contracts and Asymmetric Information," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(3), pages 531-, September.
  7. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
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