| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 9549464 | Economics Letters | 2005 | 6 Pages |
Abstract
In the presence of moral hazard, the optimal contract for a durable-goods monopolist is a lease with an option to buy. This contract is optimal regardless of the monopolist's ability to commit and creates inefficient scrappage.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Susanna Esteban, Gerard Llobet,