Toshimitsu, Tsuyoshi - In: Applied Economics Letters 12 (2005) 7, pp. 453-455
Chi (1999) shows that the durable-good monopolist facing the Coase problem not only over-supplies, but decreases the price per unit of quality, so that the high-demanded consumers do not postpone their purchase. The results derived by Chi are re-examined in the case of a fixed cost function of...