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Firm Behavior and Product Durability
Greg Goering,R. Kelley Pace 서울대학교 경제연구소 1995 Seoul journal of economics Vol.8 No.4
Traditional models of product obsolescence assume firms exhibit specific behavior. The simple two period model developed herein employs a conjectural variation framework to examine the sensitivity of sub-optimal durability within sales markets to behavioral assumptions. Even in sales markets. this model leads to two cases where efficient durability occurs and two cases where inefficient durability occurs.