Analysis on the consumers＇ choices and the equilibrium in durable market which includes secondary markets

This paper presents a framework to study consumers＇ behaviors and the equilibrium in a durable market which includes secondary markets. The author puts forward a two-period model extending the Tirole＇s literature, and analyzes the equilibrium in the used durable market under perfect and imperfect information. Moreover, the conclusion shows the important role of information to consumers＇ behaviors and the equilibrium in the entire market.