A durable-goods model, which allows consumers' values to vary over time, is analyzed. The optimal mechanism for a monopolist is computed and compared to both the sales and leasing equilibria. It is shown that sales may implement the optimal strategy, and that the dominance of leasing over sales...

I study the problem of a durable goods monopolist who lacks commitment power and whose marginal cost of production varies stochastically over time. I show that a monopolist with stochastic costs usually serves the different types of consumers at different times and charges them different prices....

We investigate an optimal investment-consumption and optimal level of insurance on durable consumption goods with a positive loading in a continuous-time economy. We assume that the economic agent invests in the financial market and in durable as well as perishable consumption goods to derive...