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...

The focus of the present work is to study the impact of the second-hand market the collusive behavior. I analyze firms' preferences for having an active second-hand market and whether policies (i.e. leasing policy, buy-back policy and warranty policy) that affect the functioning of the...