| Article ID: | iaor1991196 |
| Country: | South Korea |
| Volume: | 2 |
| Issue: | 2 |
| Start Page Number: | 63 |
| End Page Number: | 73 |
| Publication Date: | Oct 1989 |
| Journal: | IE Interfaces |
| Authors: | Kim J. |
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.