Pil, Choi Jay - In: International Economic Journal 15 (2001) 4, pp. 59-79
This paper provides a new rationale for planned obsolescence based on imperfect information about the quality of … be used as a signal of quality. With leasing, however, the durability choice incentive often runs in the other direction … for the high quality producer. This asymmetry in the returns to reduced durabhilit y implies that planned obsolescence can …