The paper provides conditions to identify the discount factor(s) and utility function in a infinite-horizon dynamic discrete choice model variation in choice sets over time. We show that if current choices or states are informative about the choice set the agent will face in the future, then the...

We explain why a durable-goods monopolist would like to create a shortage in the marketplace.We argue that this incentive arises from the presence of a second-hand market and uncertainty about consumers' willingness to pay for the good. Consumers are heterogeneous in their valuations. Moreover,...