Koenigsberg, Oded; Kohli, Rajeev; Montoya, Ricardo - In: Marketing Science 30 (2011) 1, pp. 111-122
The use of a durable good is limited by both its physical life and usable life. For example, an electric-car battery can last for five years (physical life) or 100,000 miles (usable life), whichever comes first. We propose a framework for examining how a profit-maximizing firm might choose the...