PURCHASE-TO-RENT RATIO: INFERENCES CONCERNING A PRICING POLICY.

Phillip Ein-Dor, Israel Borovits

Research output: Contribution to journalArticlepeer-review

Abstract

A study is made of the changes over time in the relationship between purchase price, rental charges and maintenance costs for four IBM computer systems. The observed changes are examined in an attempt to infer their causes. It is concluded that, apparently, IBM's purchase-to-rent ratio or payback policy is determined primarily by marketing considerations, such as competition with third party leasing companies, rather than by cost of capital or technological considerations.

Original languageEnglish
Pages (from-to)101-103
Number of pages3
JournalManage Datamatics
Volume5
Issue number3
StatePublished - 1976

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