We explore the impact of durable goods piracy in a simple two-period durability choice setting where an originator faces a future for-profit pirate that clones or duplicates copies of the durable good. We find that a social planner, as well as a monopoly originator, may well engage in a sort of...

The authors consider optimal taxation in a two-period model of a durable goods monopolist where pollution is a byproduct of production. In the case where the firm rents its output, the optimal tax is lower than the tax placed on a competitive industry, all else held constant. When the monopolist...