Time Preference and the Welfare Effects of Tie-In Sales

Economics Letters, Vol. 108, Issue 3, 314-317, September 2010

Posted: 14 Aug 2014

See all articles by Florian Heubrandner

Florian Heubrandner

Goethe University Frankfurt

Bernd Skiera

Goethe University Frankfurt

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

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

Florian Heubrandner

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Bernd Skiera (Contact Author)

Goethe University Frankfurt ( email )

Theodor-W.-Adorno-Platz 4
Frankfurt, 60323
Germany
+49 69 798 34640 (Phone)
+49 69 798 35001 (Fax)

HOME PAGE: http://www.skiera.de

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