Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93792
Authors: 
Strausz, Roland
Year of Publication: 
2009
Series/Report no.: 
SFB/TR 15 Discussion Paper 271
Abstract: 
I show that Swan's (1970) independence result requires a multiplicative interaction between durability and all other quality attributes. Because there is no compelling argument for a multiplicativity in quality, monopolists tend to distort durability, even with constant marginal costs. Distortions in durability and other quality aspects are aligned exactly when the marginal cost of quality do not increase too much with durability.
Subjects: 
Durability
quality
monopoly
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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