Durable-Goods Monopoly with Privately Known Impatience: A Theoretical and Experimental Study

We analyze a durable-goods monopoly selling a single unit of a good to a buyer whose value of the good is private information. The discount factors of the buyer and the seller may differ and are also privately known. We derive the closed-form solution of a two-period game and compare it to the behavior observed in experiments. The data are to a large extent consistent with the predictions. (JEL C90, L12, C73) Copyright 2004, Oxford University Press.

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Year of publication:	2004
Authors:	Güth, Werner ; Kröger, Sabine ; Normann, Hans-Theo
Published in:	Economic Inquiry. - Western Economic Association International - WEAI. - Vol. 42.2004, 3, p. 413-424
Publisher:	Western Economic Association International - WEAI

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Extent:	text/html
Type of publication:	Article
Classification:	C90 - Design of Experiments. General ; L12 - Monopoly; Monopolization Strategies ; C73 - Stochastic and Dynamic Games
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005564872