In this paper, I extend the analysis in Koh (2006) to examine the optimality of inter-temporal price discrimination for a durable-good monopoly in a model where infinitely-lived households consume both durable goods and a stream of non-durable goods subject to different inter-temporal budget constraints. I also consider the multi-dimensional setting where households differ in both inter-temporal budget constraints and the utilities they derive from the consumption of the durable good.
Durable good, monopoly, inter-temporal price discrimination
Econometrics | Industrial Organization
Singapore Economic Review
Economic Society of Singapore
KOH, Winston T. H..
Household Heterogeneity and Optimal Inter-Temporal Pricing for a Durable-Good Monopoly. (2006). Singapore Economic Review. 51, (3), 395-406. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/227
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