Spatial maintenance goods under monopoly

Abstract

This study addresses the effects of monopolistic firms' location and guarantee time limit on pricing for goods requiring high maintenance expenditure, such as elevators, televisions and computers. A spatial maintenance model of two stages within a guaranteed time limit is outlined in this paper. Based on this model, location, maintenance commitment and pricing are all characterized under a monopoly situation. This paper outlines the optimal price and location for the monopolist. The effects of guarantee time limit on price are discussed.

Analysis of innovation based on financial structure

“…A firm's profit closely relates to its finance and financial structure (Nie, 2011;Riordan, 2003;Showalter, 2010). Chevalier (1995) empirically confirmed the existence of interactions between capital markets and product markets.…”

Spatial Advertisement Competition: Based on Game Theory

“…Vogel also proved that more productive firms were more isolated, all else being equal. Nie [7,8] addressed maintenance commitment under spatial competitions and characterized the relationship between competitions and guarantee commitment under the Hotelling model. Recently, Nie [9] addressed the effects of spatial competitions on the innovation.…”

Spatial Competition with Entry Deterrence considering Horizontal Product Differentiations

“…The product differentiation comes from multiple factors, such as technology, management, and quality commitment [14][15][16][17][18]. In industrial organization theory, significantly, Nie [19,20] argued that the product has predominate influences on the strategies of firms to maintain durable goods. Horizontal product differentiation therefore results in different behavior of producers.…”