Tractor manufacturers are trying to lock farmers into getting repairs from their dealers. (WSJ, March 2021) One question is, "Were the manufacturers hoping to use Barbie doll pricing?"
- Consumers may lose because manufacturers increase the price of the tractor when the link between tractor sales and revenues from repairs decreases.
- Producers may lose because the increase in the price of tractors fails to offset the lose of revenue from repairs.
- The environment may also lose.
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