Loading...
report
The Impact of Sharing Markets on Product Durability
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.
Type
report
Publication date
2016
EPFL units
Available on Infoscience
November 2, 2016
Use this identifier to reference this record