Leasing vs Selling in Differentiated Goods Markets

Jong-Hee Hahn

No KERP 2004/04, Keele Economics Research Papers from Centre for Economic Research, Keele University

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.

Keywords: Leasing; Durable Goods; Horizontal Differentiation. (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2004-02
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