BARRON, JOHN M.; CHONG, BYUNG-UK; STATEN, MICHAEL E. - In: Journal of Money, Credit and Banking 40 (2008) 1, pp. 173-192
A seller with some degree of market power in its product market can earn rents. In this context, there is a gain to granting credit to purchase of the product and thus to the establishment of a captive finance company. This paper examines the optimal behavior of such a durable good seller and...