Journal of Economic Theory and Econometrics: Journal of the Korean Econometric Society
Home

About this journal
   Aims and scope

   Editorial board

Submit your article

Archive

Search

Journal of Economic Theory and Econometrics
JETEM/계량경제학보/計量經濟學報/JKES
Journal of the Korean Econometric Society

Leasing versus Selling: Marketing Strategy Choice in Durable Goods Oligopolies

Vol.18, No.4, December , 30–42



  •   (School of Economics, Yonsei University, Korea)

  •   (School of Economics, Yonsei University, Korea)

PDF
Abstract  

This paper examines firms' strategic choice between leasing and selling in a market for horizontally differentiated durable goods. We show that firms' decisions on marketing strategy may lead to socially inefficient outcomes: firms choose leasing even though direct sales are socially more desirable. Moreover, a prisoners' dilemma situation may arise: firms choose leasing while they could be better off by selling together. We also discuss on the impact of the advance of information infrastructure on the marketing practice in software markets.


Keywords
   Leasing, Durable Goods, Horizontal Differentiation, Software

JEL classification codes
   L13, D43
Links

KCI list
Korean ES
JETEM at SCOPUS

Powered by MathJax