competitive Supply of Durable Goods with Stochastic Fluctuation in Stuck

Abstract

This paper presents a theoretical model in order to determine tile
expected rate of durable good`s supply over time. The social plaliner
maximizes tile sum of the discount ed net benefit. subject to the stochastic
fluctuation in the stock of durable goods. It turns out that a social planner
increases the expected rate of supply since uncertainty increases the user's
loss from the view point of the consumers

Files

Share

How to cite

Statistics