LEE, JINHYUK; PARK, JAEOK - In: Hitotsubashi Journal of Economics 55 (2014) 2, pp. 207-228
This paper studies the common pricing practice of firms selling a durable good at a low price and a complementary consumable good at a high price. In our model, consumers discount future payments while firms receive a steady-state flow of revenues from selling the durable and consumable goods....