Arbeitspapier

Monopoly Distortions in Durability and Multi-Dimensional Quality

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.

Language: Englisch

Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 271

Classification: Wirtschaft

Subject: Durability
quality
monopoly

Event: Geistige Schöpfung

(who): Strausz, Roland

Event: Veröffentlichung

(who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

(where): München

(when): 2009

DOI: doi:10.5282/ubm/epub.13281

Handle: http://hdl.handle.net/10419/93792

URN: urn:nbn:de:bvb:19-epub-13281-0

Last update: 10.03.2025, 11:44 AM CET

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Arbeitspapier

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Strausz, Roland
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

Time of origin

2009

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Monopoly Distortions in Durability and Multi-Dimensional Quality

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