The Durable Monopoly Game, Part I: Theory and the Anti-Coase Conjecture

Abstract

"The durable monopoly game with uniformly distributed consumers is studied within a finite time horizon. It is shown that the game generically posseses a unique subgame perfect equilibrium which can be explicitely calculated. To test the Coase-Conjecture the finite time horizon is divided into successively more subperiods and the limiting solution is derived. It turns out that the Coase-Conjecture does not hold."