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Spatial maintenance goods under monopoly

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  • Pu-yan Nie

Abstract

This study addresses the effects of monopolistic firms’ location and guarantee time limit on pricing for goods requiring high maintenance expenditure, such as elevators, televisions and computers. A spatial maintenance model of two stages within a guaranteed time limit is outlined in this paper. Based on this model, location, maintenance commitment and pricing are all characterized under a monopoly situation. This paper outlines the optimal price and location for the monopolist. The effects of guarantee time limit on price are discussed.

Suggested Citation

  • Pu-yan Nie, 2011. "Spatial maintenance goods under monopoly," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 24(4), pages 16-26, January.
    • Handle: RePEc:taf:reroxx:v:24:y:2011:i:4:p:16-26
    DOI: 10.1080/1331677X.2011.11517486
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