Ausubel, Lawrence M.; Deneckere, Raymond J. - In: RAND Journal of Economics 18 (1987) 2, pp. 255-274
It has been argued that two factors -- product durability and (potential) entry -- may force a monopolist to price at marginal cost. This article shows that when these two forces coexist, the tendency toward competition may be negated. First, we prove that durable goods oligopolists without...