An intertemporal equilibrium analysis of seasonal product with consumer choice

This paper deals with the choice behavior of consumers who purchase a finite quantity of a fashion-like seasonal good. The total cost of the consumer includes disutility of scarce product and early arriving penalties. We propose an equivalent mathematical model based on the choice behavior. In the elastic demand case, we analyze the optimal price, optimal launching period of one product, and the product quantity of each period, which derived from the standpoints of monopolist revenue maximization and social welfare optimum. Finally, we explain why monopolist of fashion-like seasonal product takes high price strategy.