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Leasing vs Selling in Differentiated Goods Markets

Author

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  • Jong-Hee Hahn

    () (Keele University, Department of Economics)

Abstract

This note examines firms’ strategic choices between leasing and selling in a market for horizontally differentiated durable goods. Firms’ decisions on marketing strategies may lead to socially inefficient outcomes. Moreover, a prisoners’ dilemma-type situation may arise.

Suggested Citation

  • Jong-Hee Hahn, 2004. "Leasing vs Selling in Differentiated Goods Markets," Keele Economics Research Papers KERP 2004/04, Centre for Economic Research, Keele University.
  • Handle: RePEc:kee:kerpuk:2004/04
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    File URL: http://www.keele.ac.uk/depts/ec/wpapers/kerp0404.pdf
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    Keywords

    Leasing; Durable Goods; Horizontal Differentiation.;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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