Durable-Goods Monopoly with Privately Known Impatience: A Theoretical and Experimental Study

Werner Güth (), Sabine Kröger () and Hans-Theo Normann

Economic Inquiry, 2004, vol. 42, issue 3, 413-424

Abstract: We analyze a durable-goods monopoly selling a single unit of a good to a buyer whose value of the good is private information. The discount factors of the buyer and the seller may differ and are also privately known. We derive the closed-form solution of a two-period game and compare it to the behavior observed in experiments. The data are to a large extent consistent with the predictions. (JEL C90, L12, C73) Copyright 2004, Oxford University Press.

JEL-codes: C73 C90 L12 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (11)

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