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modes: leasing and selling. Given a marketing mode, at the beginning of the first period, an incumbent supplier and the … monopolist always chooses the open supply chain in the leasing mode, although the exclusive supply chain is attainable in the …; otherwise, it chooses the leasing mode. Regardless of the chosen marketing mode, the open supply chain always occurs on the …
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We study implications of habit formation for optimal taxation. First, we show that taxation problems with habit formation can be analyzed using dynamic programming techniques. Second, we derive optimal labor and savings wedges for habit formation preferences. We show that habit formation...
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The focus of this paper is to analyze the effect that ambiguity will have on the buyer's reservation price and the value of the option to purchase the durable good with an embedded option to resell it. The agent is assumed to be risk neutral and ambiguity averse. The problem is formulated as an...
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