I show that when oligopolistic firms manufacture semidurable goods, second-hand markets can play a key role in supporting collusive behavior. This in spite of the fact that a monopolist manufacturer has an incentive to eliminate second-hand markets – a point made by a number of authors. The...

This paper specifies and estimates a structural dynamic model of consumer demand for new and used durable goods. Its primary contribution is to provide an explicit estimation procedure for transaction costs, which are crucial to capturing the dynamic nature of consumer decisions. In particular,...

This paper specifies and estimates a structural dynamic model of consumer demand for newand used durable goods. Its primary contribution is to provide an explicit estimationprocedure for transaction costs, which are crucial to capturing the dynamic nature ofconsumer decisions. In particular,...