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to analyze the social learning mechanism and its effect on the seller's pricing decision. This analysis borrows from the … literature on social learning and on pricing and revenue management. Consumers follow a naive decision rule and, under some … heterogeneity of quality preferences. Two pricing strategies are studied: a static price and a single price change. Properties of …
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Abstract I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative...
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