Quality Standards for Used Durables: An Indirect Subsidy?

Gains from trade in used goods: Evidence from automobiles

“…If sales in the foreign country are small to begin with, the latter effect may very well outweigh the former. In the theoretical model of Clerides and Hadjiyiannis (2008) this is true even if sales in the foreign country are comparable in magnitude to domestic sales.…”

Qualifying for a government’s scrappage program to stimulate consumers’ trade-in transactions? Analysis of an automobile supply chain involving a manufacturer and a retailer

“…Using prospect theory, Kim et al (2011) developed an analytical model to explore consumers'choices in their tradeins. Moreover, some researchers addressed the trade-in issues for general durable goods; see Clerides and Hadjiyiannis (2008), Prince (2009), andRao et al (2009). Our paper di¤ers from this stream of research in that we contribute to the literature by …nding (i) the consumers'purchase decisions and the expected sales, (ii) the negotiated retail price, (iii) the optimal wholesale price, and (iv) the government's optimal MSRP cuto¤ level and subsidy that maximize the expected sales.…”

Trade liberalization, consumption shifting and pollution: Evidence from Mexico's used vehicle imports

“…Dynamic games usually have multiple equilibria. To simplify the analysis, we follow Clerides and Hadjiyiannis () by focusing on a stationary equilibrium in which the monopolist chooses a constant price path for new vehicles at every period; that is, there is only one price for new vehicles in all periods. This implies that the market outcome will be identical in every period such that the prices of new and used vehicles, and clunkers are constant at every period, , , for all , and then market demand for new vehicles is also constant at every period, for all .…”