Econometrica: Mar 1974, Volume 42, Issue 2
Product Durability under Monopoly and Competition
Morton I. Kamien, Nancy L. SchwartzThe 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.
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