This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 96 No. 5 (December 2006)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Storable Good Monopoly: The Role of Commitment

Article Citation

Dudine, Paolo, Igal Hendel, and Alessandro Lizzeri. 2006. "Storable Good Monopoly: The Role of Commitment." American Economic Review, 96(5): 1706-1719.

DOI: 10.1257/aer.96.5.1706

Abstract

We study dynamic monopoly pricing of storable goods in an environment where demand changes over time. The literature on durables has focused on incentives to delay purchases. Our analysis focuses on a different intertemporal demand incentive. The key force on the consumer side is advance purchases or stockpiling. In the case of storable goods, the stockpiling motive has recently been documented empirically. We show that, in this environment, if the monopolist cannot commit, then prices are higher in all periods, and social welfare is lower, than in the case in which the monopolist can commit. This is in contrast with the analysis in the literature on the Coase conjecture. (JEL D21, D42, L12)

Article Full-Text Access

Full-text Article

Additional Materials

Link to Appendix (120.68 KB)

Authors

Dudine, Paolo
Hendel, Igal
Lizzeri, Alessandro


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us