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Applied Economics Letters Volume 7, 2000 - Issue 8
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Original Articles

Socially optimal cost-reducing R&D with product durability

Rajeev K. Goel Department of Economics, Illinois State University, Normal, IL 61790-4200, USA
Pages 513-515 | Published online: 05 Oct 2010
 
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Abstract

Socially optimal cost-reducing R&D with product durability is studied. Results show that the first period optimal R&D and output with durability exceed the respective levels without durability. The second period R&D and output are identical to the no durability case.

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