Hendel, Igal (contributor); Lizzeri, Alessandro (contributor) - 2004
event is exponentially distributed, with parametersummationtext
N+1
m=n+1 γn,m; and (ii) conditional upon a depreciation … event, the quality of the car becomes qm
with probability
parenleftBigsummationtextN+1
m=n+1 γn,m
parenrightBig−1
γn,m.
To … for n = N −1 because when a good
of quality N −1 depreciates twice it dies, and we have assumed that this event is …