Durable-good monopoly with inventories

Asher Wolinsky

doi:10.1016/0165-1765(91)90068-V

Durable-good monopoly with inventories

Asher Wolinsky^*

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

This paper points out that familiar strategic considerations may induce a durable good monopolist to hold inventories. The motive for inventory holding by the monopoly is the standard one of production smoothing, but it arises here due to strategic considerations which induce the durable good monopoly to sell uneven quantities over time.

Original language	English (US)
Pages (from-to)	339-343
Number of pages	5
Journal	Economics Letters
Volume	37
Issue number	4
DOIs	https://doi.org/10.1016/0165-1765(91)90068-V
State	Published - Dec 1991

Funding

+ Support from the NSF is gratefully acknowledged. ’ The extensive literature on the strategic considerations faced by a durable good monopolist includes Coase (1972), Stokey (19801, Bulow (1982), Kahn (1985), and GUI, Sonnenschein and Wilson (1984). ’ The existing literature explains inventory holding either as a means of production smoothing in the face of random shocks to productivity or demand [see, e.g., Zabel (1970, 1971) and Kahn (1987)], or as a disciplining device which maintains oligopolistic collusion [see Rothemberg and Saloner (1987) and Saloner (198611.

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/0165-1765(91)90068-V

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title = "Durable-good monopoly with inventories",

abstract = "This paper points out that familiar strategic considerations may induce a durable good monopolist to hold inventories. The motive for inventory holding by the monopoly is the standard one of production smoothing, but it arises here due to strategic considerations which induce the durable good monopoly to sell uneven quantities over time.",

author = "Asher Wolinsky",

note = "Funding Information: + Support from the NSF is gratefully acknowledged. {\textquoteright} The extensive literature on the strategic considerations faced by a durable good monopolist includes Coase (1972), Stokey (19801, Bulow (1982), Kahn (1985), and GUI, Sonnenschein and Wilson (1984). {\textquoteright} The existing literature explains inventory holding either as a means of production smoothing in the face of random shocks to productivity or demand [see, e.g., Zabel (1970, 1971) and Kahn (1987)], or as a disciplining device which maintains oligopolistic collusion [see Rothemberg and Saloner (1987) and Saloner (198611. Copyright: Copyright 2014 Elsevier B.V., All rights reserved.",

year = "1991",

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doi = "10.1016/0165-1765(91)90068-V",

language = "English (US)",

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N1 - Funding Information: + Support from the NSF is gratefully acknowledged. ’ The extensive literature on the strategic considerations faced by a durable good monopolist includes Coase (1972), Stokey (19801, Bulow (1982), Kahn (1985), and GUI, Sonnenschein and Wilson (1984). ’ The existing literature explains inventory holding either as a means of production smoothing in the face of random shocks to productivity or demand [see, e.g., Zabel (1970, 1971) and Kahn (1987)], or as a disciplining device which maintains oligopolistic collusion [see Rothemberg and Saloner (1987) and Saloner (198611. Copyright: Copyright 2014 Elsevier B.V., All rights reserved.

PY - 1991/12

Y1 - 1991/12

N2 - This paper points out that familiar strategic considerations may induce a durable good monopolist to hold inventories. The motive for inventory holding by the monopoly is the standard one of production smoothing, but it arises here due to strategic considerations which induce the durable good monopoly to sell uneven quantities over time.

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JO - Economics Letters

JF - Economics Letters

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ER -

Durable-good monopoly with inventories

Abstract

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