Durability and Monopoly

  title={Durability and Monopoly},
  author={Ronald H. Coase},
  journal={The Journal of Law and Economics},
  pages={143 - 149}
  • R. Coase
  • Published 1972
  • Economics
  • The Journal of Law and Economics
ASSUME that a supplier owns the total stock of a completely durable good. At what price will he sell it? To take a concrete example, assume that one person owns all the land in the United States and, to simplify the analysis, that all land is of uniform quality. Assume also that the landowner is not able to work the land himself, that ownership of land yields no utility and that there are no costs involved in disposing of the land. If there were a large number of landowners and the price were… Expand
Market Structure, Durability, and Maintenance Effort
Peter Swan [11, 12] has recently shown that under a number of strong assumptions a profit-maximizing monopolist should produce durable goods of exactly the same durability as a competitive industryExpand
How to Commit to a Future Price
Consider a monopolist which sells a durable good and also consumables that require use of the durable good. After the firm sells the durable good, it has an incentive to charge a price greater thanExpand
Durable Goods Monopoly with Limited Choice of Commitment Strategy: When Should the Monopolist Precommit?
Consider a firm (a monopolist) offering a unique product to a fixed number of potential customers. Suppose that no consumer desires more than one unit of the good, within a given period or acrossExpand
Digitization and profitability
An economic model is developed to formally analyze the impact of digitization on the profitability to the vendor and concludes that digitization may not necessarily improve the vendor’s profitability. Expand
Durable Good Monopolies with Rational Expectations and Replacement Sales
A monopoly producer of a durable good is examined under the (previously uninvoked) assumption that the good depreciates, and hence that replacement sales must occur if a fixed stock of the good is toExpand
Optimal Taxation of a Polluting Durable Goods Monopolist
The authors consider optimal taxation in a two-period model of a durable goods monopolist where pollution is a byproduct of production. In the case where the firm rents its output, the optimal tax isExpand
The Storable Good Monopoly Problem with Indivisible Demand
The dynamic pricing problem faced by a monopolist who sells a storable good - a good that can be stored for later consumption - is studied and it is shown that, given linear storage costs, the monopolist can compute an optimal price-commitment strategy in polynomial time. Expand
Selling and Leasing Strategies for Durable Goods with Complementary Products
This contribution is to identify this trade-off and show how a durable goods manufacturer can use a combination of leasing and selling to balance its strategic commitment across both its own market as well as the complementary market. Expand
Competing for Strategic Buyers
Although revenue-management markets are rarely monopolistic, this assumption is typically made in the literature. In this paper, multiple sellers in total offer K identical goods to n>K buyers withExpand
Monopoly Production of Durable Exhaustible Resources
We examine monopoly production of a durable exhaustible resource. Previous authors have implicitly assumed that the monopolist is able to make binding commitments about future decisions. We considerExpand