Installed base management versus selling in monopolistic and competitive environments

• Main Authors: BHATTACHARYA, Shantanu, ROBOTIS, Andreas, VAN, Wassenhove Luk N. V.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Game theory; Installed base management; Operational leasing; Remanufacturing; Supply chain management; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6535; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7534/viewcontent/Installed_base_mgt_av.pdf
• Institution: Singapore Management University

This paper compares the policy of selling a product to that of installed base management, in which the manufacturer leases the product to consumers, and bundles repair and maintenance services along with the product. We compare the two policies in a monopolistic setting when a firm uses either one o...