Firms frequently position themselves as specialists. An implication of specialization is that the firm has forgone alternative opportunities. In the context of effort-intensive categories, we show that a firm can signal quality to consumers by specializing. In the model, a firm must decide to...

Although prior literature has examined reactions to drastic negative news, we examine the situation in which decision makers receive contradictory information about products and they have to decide whether to persist with or abandon product usage. We investigate physician reactions to...