IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v30y1997i4p975-90.html
   My bibliography  Save this article

Durable Services Monopolists Do Better Than Durable Goods Monopolists

Author

Listed:
  • John Spicer
  • Dan Bernhardt

Abstract

The authors consider a monopolist who can commit to a price path when selling a good for which individual consumers demand at most one unit. Only if the monopolist can also commit to destroying unpurchased stock and the timing of stock release, can she earn more than a static monopolist. This additional commitment power has empirical revelance for a wide range of goods that the authors term 'durable services.' The inability to store output facilitates price discrimination by a durable services monopolist by permitting the credible threat of rationing. The authors detail sufficient conditions for a durable services monopolist to produce more than a static or durable goods monopolist produces.

Suggested Citation

  • John Spicer & Dan Bernhardt, 1997. "Durable Services Monopolists Do Better Than Durable Goods Monopolists," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 975-990, November.
    • Handle: RePEc:cje:issued:v:30:y:1997:i:4:p:975-90
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:30:y:1997:i:4:p:975-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.