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Leasing vs Selling in Differentiated Goods Markets


  • Jong-Hee Hahn

    () (Keele University, Department of Economics)


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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    References listed on IDEAS

    1. Strachan, R.W. & van Dijk, H.K., 2003. "The value of structural information in the VAR model," Econometric Institute Research Papers EI 2003-17, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
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    More about this item


    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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