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Author: | Purohit, D. |
Title: | Marketing channels and the durable goods monopolist: renting versus selling reconsidered |
Journal: | Journal of Economics & Management Strategy
1995 : SPRING, VOL. 4:1, p. 69-84 |
Index terms: | MARKETING CONSUMER DURABLES RENTS |
Language: | eng |
Abstract: | Research on durable goods has shown that because of a time inconsistency problem, a monopolist manufacturer prefers to rent rather than sell its product. The authors reexamine the relative profitability of renting versus selling from a marketing perspective. In particular, using a simple linear demand formulation, the authors assume a durable goods monopolist has to use downstream intermediaries to market its product. |
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