Werner Guth, Sabine Kroger and Hans-Theo Normann (2002) Durable-Goods Monopoly with Privately Known Impatience: A Theoretical and Experimental Study.
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We analyze a durable-goods monopoly which sells a single unit of a good to a buyer whose value of the good is private information. The discount factors of the buyer and the seller may differ and they are private knowledge. We solve for the closed-form solution of a two-period game and compare this solution with the behavior observed in laboratory experiments. The data are to a large extent consistent with the predictions.
This is a Accepted version This version's date is: 2002 This item is not peer reviewed
https://repository.royalholloway.ac.uk/items/55a88569-b19e-ead8-384c-3ba2396905bd/1/
Deposited by Leanne Workman (UXYL007) on 02-Nov-2012 in Royal Holloway Research Online.Last modified on 02-Nov-2012
©2003 Hans-Theo Normann. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including © notice, is given to the source.