Bergemann, Dirk; Valimaki, Juuso - Center for Mathematical Studies in Economics and … - 1999
This paper analyzes the optimal entry into experience goods markets with vertically differentiated buyers. We consider … more aggressively. The slow entry strategy is associated with increasing supply and decreasing prices over time. The … reverse patterns holds for an aggressive entry strategy. The incentives to innovate display a similar dinstinction. A firm …