Resumen de Inefficient sales delays by a durable-good monopoly facing a finite number of buyers
This article offers a new explanation for unscheduled price cuts and slow adoption of durable goods. We study a standard durable-good monopoly model with a finite number of buyers and show that this game can have multiple subgame perfect equilibria in addition to the Pacman outcome�including the Coase conjecture. Of particular interest is a class of equilibria where the seller first charges a high price and only lowers that price once some�but not all�high-valuation buyers purchase. This price structure creates a war of attrition between those buyers, which delays market clearing and rationalizes unscheduled purchase and price cut dates.
