Planned obsolescence and monopoly undersupply

Miao, Chun‐Hui

doi:10.1016/j.infoecopol.2010.03.003

Cited by 17 publications

(8 citation statements)

References 19 publications

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“…The culture of consumerism is increasingly consolidating, leading to the premature replacement of the product due to the rapid obsolescence of fashion [31]. Consumerism is the belief that emotional and social needs can be met by purchasing goods and services in ever-increasing quantities [30], and this leads people to buy, use, and consume far more raw materials than the earth can sustain [32]. The offer of low-cost clothing encourages consumers to make purchases that are not really necessary from a disposable perspective.…”

Section: The Environmental Impact Of Fashion Industrymentioning

confidence: 99%

The Key Drivers of Born-Sustainable Businesses: Evidence from the Italian Fashion Industry

et al. 2020

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Environmental pollution has become one of the most pressing preoccupations for governments, policymakers, and consumers. For this reason, many companies make constant efforts to comply with international laws and standards on ethics, social responsibility, and environmental protection. Fashion companies are among the main producers of pollution because their manufacturing processes result in highly negative outcomes for the environment. In recent years, numerous fashion industries have been transforming their production policies to be sustainable, while others are already born as sustainable businesses. Based on Resource-Based View (RBV) theory and Natural Resource-Based View theory (NRBV), this paper aims at understanding how internal and external factors stimulate born-sustainable businesses operating in the fashion sector, adopting a multiple case study methodology. Our analysis shows that culture, entrepreneurial orientation of the founders, and the proximity of the suppliers among the internal factors, combined with the increase of green consumers as an external factor, foster the creation of green businesses. At the same time, neither current legislation nor the dynamism and competitiveness of markets have influenced the choice of the companies’ founders to start a business based on green production logic. These results reveal the centrality of the founders’ sensitivity toward green strategies to create a sustainable business. The findings have practical implications because they could support regulatory institutions to introduce some incentives that more clearly encourages companies that choose to adopt sustainable business models from the founding, by acting to the internal and external key factors that drive born-sustainable businesses. This study also provides an extension of the existing literature on sustainable born companies, offering researchers useful information on internal and internal factors that promote the adoption of green policies in the fashion industry.

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Section: The Environmental Impact Of Fashion Industrymentioning

confidence: 99%

The Key Drivers of Born-Sustainable Businesses: Evidence from the Italian Fashion Industry

et al. 2020

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“…Reference [31] deals with a monopoly platform in a two-sided market, which has an incentive to maintain incompatibility for foreclosing competition in its complementary market. Reference [32] also extends the scheme of planned obsolescence [28] to the two-sided markets. References [17,33] examine the cases of competing platforms, where incompatibility gives rise to benefits for dominant platform player.…”

Section: Two-sided Market and Compatibility: Literature Review And Oumentioning

confidence: 99%

Equilibrium Analysis for Platform Developers in Two-Sided Market with Backward Compatibility

Kim

2018

Games

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We consider a dominant platform provider operating both legacy and new platforms that connects users with suppliers in a two-sided market context. In addition to the typical indirect network effects in the two-sided market, backward compatibility works on the new platform. Thus, users joining the new one can also enjoy the services provided by suppliers using the legacy platform. Users and suppliers are linearly differentiated between two platforms as in the Hotelling model and play a subscription game of choosing one platform at the lower level. The suppliers in the new platform may suffer from congestion, which can be alleviated by platform provider’s investment on the new one. The platform provider also determines price margins for the supplier sides. Our equilibrium (eq.) analysis in the subscription game identifies an interior eq. (coexistence of both platforms in both sides). Though the backward compatibility plays a stabilizing role for the interior eq., its stability is fragile due to the network effects. Rather, some boundary eq.’s, where at least one side tips to the legacy or the new platform, are more likely to be stable. The backward compatibility is a key factor that characterizes the stable boundary eq.’s. The upper stage game is led by the platform provider, which tries to maneuver the system toward one of the stable boundary eq.’s using price margins and investment. The platform provider prefers an all-new boundary eq. when the indirect network effect and the maximum price margin for the new platform are large; thus, it puts a significant investment in the new one. With a small indirect network effect for suppliers, however, the platform provider does not invest in the new platform and choose a separate boundary eq. where two sides split into different platforms. Whether the user side completely tips to the new one (completely separated eq.) or not (partially separated eq.) depends on the backward compatibility. The relative advantage of the all-new eq. over the separate eq.’s in terms of social welfare from both sides depends on the backward compatibility as well as the indirect network effects for the new platform.

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“…People who believe in this paradigm explain and present their own wealth through all the things they possess. Hence overconsumption means that people buy, use and consume far more raw materials than they require and or the earth can sustain [3].…”

mentioning

confidence: 99%

“…The existing paradigm (planned obsolescence) does not seem possible or sustainable at a macro-level. This paradigm is leading humanity to a great ecological disaster, affecting the natural resources and economies of countries [2][3][4].…”

mentioning

confidence: 99%

“…The most significant issue of sustainable development is its own constraints, namely that there is a restriction on the quantity of locations, land, raw materials, water sources, air and all natural sources supported by the world. Due to this, there needs to be a paradigm change which completely rejects "planned obsolescence" for a sustainability approach [1][2][3][4].…”

mentioning

confidence: 99%

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Potential Risks and Their Analysis of the Apparel & Textile Industry in Turkey: A Quality-Oriented Sustainability Approach

Erdil

Taçgın

2018

Fibres and Textiles in Eastern Europe

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The most significant issues in businesses within the scope of manufacturing and services are the sustainability of production quality, setting quality standards and reducing the waste amount during the manufacturing process. From this point of view, the aim of this study is to provide a better quality level of supplying households’ apparel needs while reducing the environmental, economic and social problems of the sustainable supply chain of the apparel sector and extending the lifecycle of apparel. The importance of risk analyses and calculations in the applications of industrial sectors plays a vital role in evaluating the factors of sustainability dimensions. In order to address this risk analysis in this research, quality-oriented implementations are applied to determine the failure modes and effect analysis (FMEA). The significant factors are determined via Pareto Analysis (PA) to control and prevent potential errors and failures in the manufacturing systems of the textile industry. To achieve the aim of this study, the methodology of the research focuses on discovering failures of negative impact based on the primary factor degrees with the computing of risk priority numbers (RPNs) in the manufacturing process of the textile-apparel industry in Turkey. According to the ranking of the RPNs, FMEA application and PA enable to decrease the effects of negative factors and risks as well as the waste amount of the apparel-textile industry, as well as to increase the lifecycle of apparel and products.

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Planned obsolescence and monopoly undersupply

Cited by 17 publications

References 19 publications

The Key Drivers of Born-Sustainable Businesses: Evidence from the Italian Fashion Industry

The Key Drivers of Born-Sustainable Businesses: Evidence from the Italian Fashion Industry

Equilibrium Analysis for Platform Developers in Two-Sided Market with Backward Compatibility

Potential Risks and Their Analysis of the Apparel & Textile Industry in Turkey: A Quality-Oriented Sustainability Approach

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