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Time preference and the welfare effects of tie-in sales

Article ID Journal Published Year Pages File Type
5061069 Economics Letters 2010 4 Pages PDF
Abstract

This paper shows for B2C tie-in sales with a monopoly or competition in the durable market that tying increases welfare for the likely case that consumers exhibit higher discount rates than firms.

Keywords
Intertemporal consumer choiceTime preferencePricing
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Time preference and the welfare effects of tie-in sales
Authors
Florian Heubrandner, Bernd Skiera,
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Intertemporal consumer choice
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