Planned Obsolescence and Social Welfare
Planned Obsolescence and Social Welfare
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计划报废和社会福利
DOI:
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发表时间:
2006
期刊:
影响因子:
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通讯作者:
Atsuo Utaka
中科院分区:
文献类型:
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作者:
Atsuo Utaka
Durable-goods marketing has an obsolescence effect on older models. I consider two cases: commitment (where the decision on how much to invest in marketing is made in the first period) and noncommitment (where the decision is made in the second period). I focus on the fact that the introduction of a higher quality model lowers the utility of consumers using an older model. I show that, in both cases, the equilibrium level of marketing rises above the socially optimal level. The point is that a larger obsolescence effect promotes replacement demand, driving the monopolist to spend more than is socially optimal.