Ronald Coase is also known for the Coase Conjecture. It states that if a durable-goods monopolist can make offers to sell arbitrarily frequently, then in equilibrium, that monopolist will charge the competitive price, and the market will be saturated quickly.3 How Is the Coase Theorem Applied L...
Examples of goods that are more price elastic in demand are durable goods, for which buyers can more easily put off replacement purchases;luxury goods, which consumers can forgo buying and live without; and goods that have many close substitutes, which consumers can easily switch out for a simi...
times—for example, the automotive and durable consumer goods industries. In repetitive manufacturing, dedicated assembly lines or manufacturing cells are set up for the same product or family of products, production is run 24/7/365, and work-in-process material is not moved to a temporary ...
3 Non-linear budget sets create dynamic incentives (i.e. the distinction between spot and future price) and raise the question of whether consumers are forward-looking. This has been studied in the durable goods market, with Chevalier and Goolsbee (2009) focusing on used college textbooks and ...
What goods and services should be produced? What is example of economies of scale in transportation? What are social goods? What is an example of a mixed economy? What do you call goods sold in other countries? What are unrelated goods? What are durable goods? What are some examples of ...
Durable means the money is easy to save across time; it does not rot or rust or break easily. Fungible means that individual units of the money don’t differ significantly from each other, which allows for fast transactions. Verifiable means that the seller of the goods or services for the...
Public goodsDurable goodsWe report the results of a field experiment where we exogenously vary the use of social comparison "nudges" and subsidies for participation in an in-home energy audit program. We follow subjects through to subsequent purchase of durable goods. We therefore can compare the...
Why is the long-run demand for durable goods more income elastic than the short-run demand? Is this also the case for non-durables? Draw a basic aggregate demand and aggregate supply graph (with LRAS constant) that shows the economy in the long-run equilibrium. a) Assume ...
Shapiro:The challenge for antitrust is: Do network effects lead to durable monopoly power? And in the presence of network effects, what conduct stifles competition and innovation? Linux is out there as an alternative operating system that’s quite good, but it doesn’t yet have critical mass...
In the context of manufacturing, robust processes are adaptable and can maintain quality despite variations in input and environmental factors. Conversely, durable goods are manufactured with materials and techniques that ensure a longer lifecycle, even under frequent or intense use. 9 Robust systems or...