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A Note on Welfare in the Durable-Goods Monopoly

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  • Malueg, David A
  • Solow, John L

Abstract

Depending upon the shape of the rental demand curve facing a durable-goods monopolist, social welfare may be raised or lowered by requiring the monopolist to sell, rather than rent, its output. Indeed, the equilibrium under rentals may Pareto-dominate the equilibrium under sales. Copyright 1989 by The London School of Economics and Political Science.

Suggested Citation

  • Malueg, David A & Solow, John L, 1989. "A Note on Welfare in the Durable-Goods Monopoly," Economica, London School of Economics and Political Science, vol. 56(224), pages 523-527, November.
    • Handle: RePEc:bla:econom:v:56:y:1989:i:224:p:523-27
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    Citations

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    Cited by:

    1. Usategui Díaz de Otalora, José María, 2001. "Commitment Power in a Non-Stationary Durable-Good Market," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    2. Hassan Benchekroun & Ngo Van Long, 2008. "A Class Of Performance‐Based Subsidy Rules," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 381-400, December.
    3. John R. Boyce & Gregory E. Goering, 1997. "Optimal Taxation of a Polluting Durable Goods Monopolist," Public Finance Review, , vol. 25(5), pages 522-541, September.
    4. William Caylor, 2016. "Credible Signals Of The Release Of New Versions," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 862-878, April.
    5. Choi, Jay Pil & Thum, Marcel, 2003. "The dynamics of corruption with the ratchet effect," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 427-443, March.
    6. John Solow, 1998. "An Economic Analysis of the Droit de Suite," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 22(4), pages 209-226, December.
    7. Saracho, Ana I., 2011. "Licensing information goods," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 187-199, March.

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