Type

Text

Type

Dissertation

Advisor

Brusco, Sandro | Tauman, Yair | Dubey, Pradeep | Lopomo, Giuseppe.

Date

2015-12-01

Keywords

Economics | Durable good monopoly, Durable good oligopoly, Quality choice, Vertical differentiation

Department

Department of Economics.

Language

en_US

Source

This work is sponsored by the Stony Brook University Graduate School in compliance with the requirements for completion of degree.

Identifier

http://hdl.handle.net/11401/77423

Publisher

The Graduate School, Stony Brook University: Stony Brook, NY.

Format

application/pdf

Abstract

This dissertation constructs a model of durable-goods oligopoly and monopoly in which quality choice is allowed and analyzes the equilibrium behavior of the firms and consumers. The second chapter considers the case of multiple firms and continuum of consumers whose types are uniformly distributed in infinite horizon setting and shows that there exists an equilibrium where higher-quality good is not offered before certain period even though firms are capable of producing them. The first section of the third chapter analyzes the market which consists of a monopolist who faces a single consumer that has two possible types and shows that the firm charges higher first period price when the consumer's valuation is more likely to be high. The second section of the third chapter examines the market which consists of a monopolist who faces continuum of consumers whose types are again uniformly distributed and shows that lower-quality good is offered only if the monopolist is patient enough. | 34 pages

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