This study examines the situation in which a monopolist offers freeware as an advertisement for the increase of demand to maximize profit even though the existence of such freeware will reduce the power of the monopolist in the market. This study proves that the successful application of...

This note re-examines the previous results on durable goods monopolists under the time inconsistency problem that the firm tends to make its goods less compatible as a “planned obsolescence” strategy in the presence of network effects. We find that the possibility of the commitment to...