Decision Sciences
8 years ago

Monopolist's Pricing Strategy Impacts Durability of Durable Goods and Accessories

Durability Choice Model of Durable Goods with Easy-to-Wear Accessories
Yan Wang

Paper Summary

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A study looked at how companies decide on prices and durability for products and their accessories. The researchers found that the usual rule for pricing doesn't always apply to products that last a long time. They also discovered that the durability of a product can affect how long its accessories last.