| Durables are the products which can provide service more than one period. The biggest difference between durables and non-durables is that, the durable goods can be used until the second period after consumed in the first phase, rather than the durable goods must be replaced for each phase. Some of them are able to re-enter the circulation market and formation it's secondary market. This paper presents a framework to study how changes in exogenous parameters, such as quality levels of new and used durables, affect the composition of durables stocks.Researches on durables market mainly concentrate in two areas. First is studies on the durables'secondary market; and the other is durables market introduced information. In this paper, The author put forward a two-period model extending the Tirole's literature, and analyze the equilibrium in the used durables market under perfect and imperfect information. The author hopes to understand the economic factors resulting in the changes in the equilibrium situation. In addition, consumers'behaviors and market equilibrium are influenced by the information to a great extent; therefore, the author did some research on the consumers'information on the used durables'qualities and contrasting consumers'behaviors under perfect and imperfect information. Our results could be applied to evaluate policies for controlling the externality level associated with the use and quality of durable goods in the long-term.The characteristics of this study mainly reflected in the new consumer's behavior model which embodies the characteristics of durables. And the assumptions on consumer's behavior are more comprehensive. Based on the consumer's position, we link the quality of durables, consumer's preference and consumer's choice of behaviors, which make the consumer's behavior model closer to the real market as the original models. We also acquire different concludes, which is of a certain academic significance. |
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