Spatial maintenance goods under monopoly

Pu-yan Nie

Economic Research-Ekonomska Istraživanja, 2011, vol. 24, issue 4, 16-26

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.

Date: 2011
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DOI: 10.1080/1331677X.2011.11517486

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