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- W2097987558 abstract "According to the hypothesis of planned obsolescence, a durable goods monopolist without commitment power has an excessive incentive to introduce new products that make old units obsolete, and this reduces its overall profitability. In this paper, I reconsider the above hypothesis by examining the role of competition in a monopolist's upgrade decision. I find that, when a system add-on is competitively supplied, a monopolist chooses to tie the add-on to a new system that is only backward compatible, even if a commitment of not introducing the new system is available and socially optimal. Tying facilitates a price squeeze." @default.
- W2097987558 created "2016-06-24" @default.
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- W2097987558 date "2010-09-03" @default.
- W2097987558 modified "2023-10-14" @default.
- W2097987558 title "TYING, COMPATIBILITY AND PLANNED OBSOLESCENCE*" @default.
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- W2097987558 doi "https://doi.org/10.1111/j.1467-6451.2010.00425.x" @default.
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