Leasing contracts specify a rental rate and an option price at which the used good can be bought at the termination of … prices. In contrast, under adverse selection, leasing contracts affect equilibrium allocations in a way that matches observed … behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect …

Leasing contracts specify a rental rate and an option price at which the used good can be bought at the termination of … prices. In contrast, under adverse selection, leasing contracts affect equilibrium allocations in a way that matches observed … behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect …

Leasing contracts are extensively used in durable goods markets. These contracts specify a rental rate and an option … adverse selection instead, leasing contracts affect equilibrium allocations in a way that matches observed behavior in the car … of higher quality. Moreover, the model predicts that the recent increase in leasing can be explained by the observed …

Leasing contracts are extensively used in durable goods markets. These contracts specify a rental rate and an option … adverse selection instead, leasing contracts affect equilibrium allocations in a way that matches observed behavior in the car … higher quality. Moreover, the model predicts that the recent increase in leasing can be explained by the observed increase in …