Quality, upgrades and equilibrium in a dynamic monopoly market
Publication
, Journal Article
Anton, JJ; Biglaiser, G
Published in: Journal of Economic Theory
May 1, 2013
We examine an infinite horizon model of quality growth for a durable goods monopoly. The seller may offer any bundle(s) of current and previous quality improvements (upgrades). Subgame perfect equilibrium seller payoffs range from capturing the full social surplus down to only the initial flow value of each good, as long as the value of all future quality growth exceeds the value of a single unit. Each of these payoffs is realized in a Markov perfect equilibrium that follows the socially efficient path. However, inefficient delay equilibria, with bundling, exist for innovation rates above a threshold. © 2012 Elsevier Inc.
Duke Scholars
Published In
Journal of Economic Theory
DOI
EISSN
1095-7235
ISSN
0022-0531
Publication Date
May 1, 2013
Volume
148
Issue
3
Start / End Page
1179 / 1212
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3801 Applied economics
- 1499 Other Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Anton, J. J., & Biglaiser, G. (2013). Quality, upgrades and equilibrium in a dynamic monopoly market. Journal of Economic Theory, 148(3), 1179–1212. https://doi.org/10.1016/j.jet.2012.12.006
Anton, J. J., and G. Biglaiser. “Quality, upgrades and equilibrium in a dynamic monopoly market.” Journal of Economic Theory 148, no. 3 (May 1, 2013): 1179–1212. https://doi.org/10.1016/j.jet.2012.12.006.
Anton JJ, Biglaiser G. Quality, upgrades and equilibrium in a dynamic monopoly market. Journal of Economic Theory. 2013 May 1;148(3):1179–212.
Anton, J. J., and G. Biglaiser. “Quality, upgrades and equilibrium in a dynamic monopoly market.” Journal of Economic Theory, vol. 148, no. 3, May 2013, pp. 1179–212. Scopus, doi:10.1016/j.jet.2012.12.006.
Anton JJ, Biglaiser G. Quality, upgrades and equilibrium in a dynamic monopoly market. Journal of Economic Theory. 2013 May 1;148(3):1179–1212.
Published In
Journal of Economic Theory
DOI
EISSN
1095-7235
ISSN
0022-0531
Publication Date
May 1, 2013
Volume
148
Issue
3
Start / End Page
1179 / 1212
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3801 Applied economics
- 1499 Other Economics
- 1401 Economic Theory