S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics (SJE) Seoul Journal of Economics vol.08(4) (Winter 1995)
Firm Behavior and Product Durability
- Issue Date
- Seoul Journal of Economics, Vol.8 No.4, pp. 443-456
- Traditional models of product obsolescence assume firms exhibit specific behavior. The simple two period model developed herein employs a conjectural variation framework to examine the sensitivity of sub-optimal durability within sales markets to behavioral assumptions. Even in sales markets. this model leads to two cases where efficient durability occurs and two cases where inefficient durability occurs.