Mergers in durable goods industries
نویسندگان
چکیده
منابع مشابه
Durable Goods and Conformity
Is the variety of products supplied in markets a reflection of the diversity of consumers’ preferences? In this paper, we argue that the distribution of durable goods offered in markets tends to be compressed relative to the distribution of consumers’ underlying preferences. In particular, there are strong incentives for conformity in markets for durable goods. The reason for conformity is natu...
متن کاملPerishable Durable Goods
We examine whether the Coase conjecture [7, 14, 4, 10] is robust against slight ability of commitment of the monopolist not to sell the durable goods to consumers. We quantify the commitment ability in terms of the speed that the durable goods perish, while keeping the time between the o ers small. We demonstrate that the slight commitment capability makes a substantial di erence by constructin...
متن کاملDamaged Durable Goods
A durable-goods monopolist may use quality degradation as a commitment not to lower price in the future. The introduction of damaged goods expedites lowvaluation consumers future demands, and helps the firm to mitigate the Coasian time-consistency problem. In such a case, damaged goods are more likely to be observed relative to the static setting where only the price-discrimination aspect of q...
متن کاملCompetitive supply of durable goods under stochastic fluctuation in stock
This paper presents a theoretical model in which the stock growth rate of durable goods has stochastic fluctuation over time. It concludes that a social planner increases the expected percentage rate of production since uncertainty increases the user cost from consumer’s point view.
متن کاملIndirect Costs of Financial Distress in Durable Goods Industries: The Case of Auto Manufacturers
Financial distress can disrupt a durable goods producer’s provision of complementary goods and services such as warranties, spare parts and maintenance. This reduces consumers’ demand for the core product, causing indirect costs of financial distress. We test this hypothesis in the market for used cars sold at wholesale auctions. An increase in a manufacturer’s CDS significantly decreases the p...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Behavior & Organization
سال: 2008
ISSN: 0167-2681
DOI: 10.1016/j.jebo.2008.08.002