Chen, Jiawei; Esteban, Susanna; Shum, Matthew - Instituto de Ciencias Sociales, Instituto Madrileño de … - 2010
Do active secondary markets aid or harm durable goods manufacturers? We build a dynamic equilibrium model of durable goods oligopoly, with consumers who incur lumpy costs when transacting in the secondary market, and calibrate it to U.S. automobile industry data. By varying transaction costs, we...