Econometrica: Mar 1974, Volume 42, Issue 2
Product Durability under Monopoly and Competition
https://doi.org/0012-9682(197403)42:2<289:PDUMAC>2.0.CO;2-K
p.
289-302
Morton I. Kamien, Nancy L. Schwartz
The durabilities of a consumption good produced in a perfectly competitive market or by a monopoly are compared. The analysis is conducted in terms of firm profit maximization in a Cournot industry. Conclusions are based on the properties of the entire optimal path rather than on the steady state alone.Log In To View Full Content