Liu, Ting; Schiraldi, Pasquale - In: European Economic Review 70 (2014) C, pp. 1-16
We explain why a durable-goods monopolist would like to create a shortage during the launch phase of a new product. We argue that this incentive arises from the presence of a second-hand market and uncertainty about consumers׳ willingness to pay for the good. Consumers are heterogeneous and...