Repair Market Structure, Product Durability, and Monopoly
Repair Market Structure, Product Durability, and Monopoly
复制标题
维修市场结构、产品耐久性和垄断
DOI:
10.1111/1467-8454.00061
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发表时间:
1999
期刊:
影响因子:
--
通讯作者:
Hiroshi Kinokuni
中科院分区:
文献类型:
--
作者:
Hiroshi Kinokuni
This paper shows that a durable goods monopolist makes consumers choose a level of repairs which is below the socially optimal level if it monopolises the repair market as well. This distortion occurs due to the possibility of substituting new and used goods and a time inconsistency problem concerning repair decisions. However, if the monopolist is unable to commit the repair price, it may prefer to invite competitors into the repair market. If the repair market is competitive, even when the product market is monopolistic, the socially optimal level of repairs, and thus also the socially optimal durability level is chosen. Copyright 1999 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia