Time Preference and the Welfare Effects of Tie-In Sales
Economics Letters, Vol. 108, Issue 3, 314-317, September 2010
Posted: 14 Aug 2014
Date Written: 2010
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: Tie-in sales, Time preference, Pricing, Intertemporal consumer choice
JEL Classification: D4, D6, D9
Suggested Citation: Suggested Citation
Heubrandner, Florian and Skiera, Bernd, Time Preference and the Welfare Effects of Tie-In Sales (2010). Economics Letters, Vol. 108, Issue 3, 314-317, September 2010, Available at SSRN: https://ssrn.com/abstract=2479769
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