Vertically Differentiated Durable Goods Monopoly: Coexistence of Contrasting Markov-Perfect Equilibria

2020 ◽  
Author(s):  
Didier Laussel ◽  
Ngo Van Long ◽  
Joana Resende
Keyword(s):  
Durable Goods ◽  
Durable Goods Monopoly ◽  
Markov Perfect ◽  
Perfect Equilibria

scholarly journals Dynamic Durable Goods Monopoly and Market Power

Games ◽  
2020 ◽  
Vol 11 (2) ◽  
pp. 22
Author(s):  
Basak Altan
Keyword(s):  
Market Power ◽  
Discrete Time ◽  
Durable Goods ◽  
Infinite Horizon ◽  
Monopoly Power ◽  
Durable Good ◽  
Durable Goods Monopoly ◽  
Markov Perfect

We analyze a vertically differentiated market for an imperfectly durable good served by a monopolist in an infinite-horizon, discrete-time game. Our goal is to identify the Markov perfect stationary equilibria where the seller can maintain his monopoly power. We establish that the set of parameters supporting a monopoly outcome is larger when the seller offers different quality versions of the same product. Hence, our results suggest that, when the innate durability of a product is high, the seller should offer different quality versions of the product.

scholarly journals Durable goods monopoly with stochastic costs

2017 ◽  
Vol 12 (2) ◽  
pp. 817-861 ◽  
Author(s):  
Juan Ortner
Keyword(s):  
Durable Goods ◽  
Durable Goods Monopoly

scholarly journals Robust Markov perfect equilibria

2014 ◽  
Vol 419 (2) ◽  
pp. 1322-1332 ◽  
Author(s):  
Anna Jaśkiewicz ◽  
Andrzej S. Nowak
Keyword(s):  
Markov Perfect ◽  
Perfect Equilibria
Sign in / Sign up

Export Citation Format

Share Document