behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect … can benefit from leasing contracts for two reasons: better pricing of the option of keeping the used good, and market …Leasing contracts specify a rental rate and an option price at which the used good can be bought at the termination of …

behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect … can benefit from leasing contracts for two reasons: better pricing of the option of keeping the used good, and market …Leasing contracts specify a rental rate and an option price at which the used good can be bought at the termination of …

that a producer with market power can benefit from leasing contracts for two reasons: market segmentation and better …Leasing contracts are extensively used in durable goods markets. These contracts specify a rental rate and an option … adverse selection instead, leasing contracts affect equilibrium allocations in a way that matches observed behavior in the car …