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On requiring the durable goods monopolist to sell
Journal article   Peer reviewed

On requiring the durable goods monopolist to sell

David A. Malueg and John L. Solow
Economics letters, Vol.25(3), pp.283-288
1987
DOI: 10.1016/0165-1765(87)90229-1

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Abstract

Requiring a monopolist to sell its output (rather than renting it) my lead to beneficial output adjustments or harmful quality adjustments. In a durable goods model, we show that requiring sales decreases welfare in only a small fraction of cases, but it strictly increases welfare in a majority of cases.

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