Description: Department Seminar

Location: 368A Heady Hall

Contact: John Crespi

Title: Tractor Troubles: Right to Repair in Durable Goods Duopolies

Abstract: Does strategic competition in an oligopolistic market for a durable good deter manufacturers from restricting repairs provided by third-parties or durable goods owners themselves? Manufacturers argue yes, while the right-to-repair movement argues no. To address this policy-based question, I develop a theoretical framework in which differentiated Bertrand durable good duopolists choose strategically whether or not to limit competition from durable good owners in the aftermarket for repairs. I present numerical and analytical evidence that there exist reasonable market conditions in which manufacturers have a profit-maximizing incentive to restrict repairs. Further, I explicitly derive such conditions and discuss their implication for right-to-repair policy.