Competitive Planned Obsolescence

Grout, Paul A.; Park, In-Uck

doi:10.2139/ssrn.480666

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Competitive Planned Obsolescence

19 Pages Posted: 27 Dec 2003

See all articles by Paul A. Grout

Paul A. Grout

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

In-Uck Park

University of Bristol

Date Written: March 2003

Abstract

This paper provides a model of planned obsolescence in a competitive market. A feature of the model is that there are configurations where a firm cannot survive in the competitive market unless its product exhibits planned and known obsolescence. This form of obsolescence is complementary to that of existing models and arises from the ability of planned obsolescence to minimize the lemons problem.

Suggested Citation: Suggested Citation

Grout, Paul A. and Park, In-Uck, Competitive Planned Obsolescence (March 2003). Available at SSRN: https://ssrn.com/abstract=480666 or http://dx.doi.org/10.2139/ssrn.480666