A firm must decide whether to launch a new product. A launch implies considerable fixed costs, so the firm would like to assess downstream demand before it decides. We study under which conditions a potential buyer would be willing to reveal his willingness to pay under different pricing...

When a new brand is launched, consumers are initially both uncertain of and not inertial to the new brand. Though these barriers may disappear on their own over time, a savvy brand manager who knows the relative importance of both can use relevant marketing levers to increase profits in the long...