Chayet, Sergio; Kouvelis, Panos; Yu, Dennis Z. - In: Manufacturing & Service Operations Management 13 (2011) 3, pp. 390-403
We investigate a firm's product line design and capacity investment problem for vertically differentiated products along design quality levels. Customers arrive according to a Poisson process and are heterogeneous in their marginal valuation of the quality level. Customers make product choices...