RT Journal Article
T1 A Vintage Model of Trade in Secondhand Markets and the Lifetime of Durable Goods
A1 Licandro, Omar
A1 Puch, Luis A.
A1 Rodríguez Sampayo, Antonio
K1 economic obsolescence
K1 heterogeneous consumers
K1 optimal consumption
K1 replacement
K1 secondhand markets
K1 vintage capital
AB How is the replacement of durable goods affected by the existence of a secondhand market? To answer this question, a vintage model of durable goods replacement is specified where efficient trade in used goods arises by assuming the existence of two types of consumers differentiated by income. The resulting steady state optimal replacement decision and secondhand market price are characterized, stressing the influence of economic depreciation. Compared to autarky, the consideration of an efficient secondhand market between high and low income people modifies the age profile of prices, increasing and decreasing for durable goods owned by high and low income people, respectively. Moreover, at the age at which used durable goods are traded, not only ask and bid prices are equal but also their age derivatives.
PB Taylor & Francis
SN 0889-8480
YR 2008
FD 2008-11
LK https://hdl.handle.net/10347/37901
UL https://hdl.handle.net/10347/37901
LA eng
NO LICANDRO, O., PUCH, L. A., & SAMPAYO, A. (2008). A Vintage Model of Trade in Secondhand Markets and the Lifetime of Durable Goods. Mathematical Population Studies, 15(4), 249–266. https://doi.org/10.1080/08898480802440828
NO We want to acknowledge financial support from the Spanish Ministry of Science and Education (SEJ2004-04579/ECON and SEJ2007-65552/ECON). Puch thanks Fundación Ramón Areces and Sampayo thanks Xunta de Galicia (PGIDIT06PXIB201142PR) for the financial support.
DS Minerva
RD 22 abr 2026