Durable goods with quality differentiation

Roman Inderst

Economics Letters, 2008, vol. 100, issue 2, 173-177

Abstract: We study the optimal strategy of a durable-goods monopolist who can offer goods in different qualities. The key finding is that the presence of the additional sorting variable further undermines the firm's commitment problem, leading to results that contrast sharply with those of standard durable-goods models or those of models where the firm can commit.

Date: 2008
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Citations: View citations in EconPapers (17)

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Working Paper: Durable Goods with Quality Differentiation (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:100:y:2008:i:2:p:173-177

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