Once a durable-good manufacturer sells a product to a consumer, it faces a challenge to convince this consumer to purchase another good. A consumer needs one refrigerator, one razor, a limited number of shirts, and so forth. Durability, therefore, may mean limited prospects for businesses. Ronald Coase argued that because of the durability problem a durable-good monopolist may not be able to exploit its market position and charge monopolistic prices. His thesis is known as the Coase Conjecture. The durability problem is not limited to "monopolists" in the strict sense of the term. It may happen in all markets for durable goods, although it is easier to understand it with a single seller.
