Faculty of Economics and Business Administration Publications Database

Time Preference and the Welfare Effects of Tie-in Sales

Heubrandner, Florian
Volume: 108
Number: 3
Pages: 314 - 317
Month: September
ISSN-Print: 0165-1765
Link External Source: Online Version
Year: 2010
Keywords: Tie-in sales; Time preference; Pricing; Intertemporal consumer choice
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.