A Competitive Equilibrium Model of the Market for Used Goods

내구재 시장의 경쟁 균형 모형

The present paper determines the equilibrium price function of used goods and their carry-over age when there are heterogeneous firms with different factor prices. It is shown that the used good market enables more efficient use of durable goods and thereby gains from trades. It is also shown that firms with a lower interest rate and a higher wage rate specialize in using newer goods.