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The Impact of Sharing Markets on Product Durability

Razeghian Jahromi, Maryam  
•
Weber, Thomas A.  
2016

This paper studies the effects of sharing markets on the prices for new products and on product design in terms of durability. In a dynamic economy with overlapping generations, consumers take strategic purchasing decisions, anticipated by a durable-goods monopolist. Without sharing, the optimal durability increases in the production cost. In the presence of sharing, a producer prefers to limit durability for low-cost products, effectively disabling a secondary sharing market. However, all else equal, a peer-to-peer economy never decreases the incentives to provide durability.

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Type
report
Author(s)
Razeghian Jahromi, Maryam  
Weber, Thomas A.  
Date Issued

2016

Subjects

Collaborative Consumption

•

Durability

•

Peer-to-peer Markets

•

Planned Obsolescence

•

Sharing Economy

Written at

EPFL

EPFL units
OES  
Available on Infoscience
November 2, 2016
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/130911
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