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Household Heterogeneity And Optimal Inter-Temporal Pricing For A Durable-Good Monopoly

Author

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  • WINSTON T.H. KOH

    (School of Economics and Social Sciences, Singapore Management University, 90 Stamford Road, Singapore 178903, Singapore)

Abstract

In this paper, I extend the analysis in Koh (2006) to examine the optimality of inter-temporal price discrimination for a durable-good monopoly in a model where infinitely-lived households consume both durable goods and a stream of non-durable goods subject todifferentinter-temporal budget constraints. I also consider the multi-dimensional setting where households differ in both inter-temporal budget constraints and the utilities they derive from the consumption of the durable good.

Suggested Citation

  • Winston T.H. Koh, 2006. "Household Heterogeneity And Optimal Inter-Temporal Pricing For A Durable-Good Monopoly," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 51(03), pages 395-403.
    • Handle: RePEc:wsi:serxxx:v:51:y:2006:i:03:n:s0217590806002494
    DOI: 10.1142/S0217590806002494
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