Many commodities traded internationally are durable in nature. A dynamic durable goods oligopoly trade model is analyzed. The analysis indicates that the pattern of intra-industry trade depends fundamentally on the quality or durability of the firms' output. Also, product durability influences...

Stylized durable goods monopoly models typically conclude that monopolists prefer to rent their output due to commitment problems associated with sales. However, we commonly observe monopolistic firms in durable goods industries simultaneously selling and renting output. To address this apparent...