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THE ECONOMICS OF SHORT‐TERM LEASING
Author(s) -
FLATH DAVID
Publication year - 1980
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1980.tb00573.x
Subject(s) - economics , term (time) , monopoly , microeconomics , quality (philosophy) , public economics , philosophy , physics , epistemology , quantum mechanics
Short‐term leasing is an everyday occurrence. Tax savings cannot account for the ubiquity of leasing by temporary users. Monopoly explanations are inconsistent with concurrent leasing and selling markets for perfect substitutes. Leasing economizes upon the costs of detecting, assuring, and maintaining quality, costs of search, and costs of risk‐bearing. This view is based on standard economic reasoning and has numerous specific implications.