Monopoly distortions in durability and multi-dimensional quality

Without a multiplicative interaction between durability and other quality attributes Swan's (1970) independence result is violated, even with constant marginal costs. Subsequent distortions are aligned when the marginal cost of quality does not increase too much with durability.

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Year of publication:	2009
Authors:	Strausz, Roland
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 3, p. 333-335
Publisher:	Elsevier
Subject:	Durability Quality Monopoly

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008474026