This paper studies the impact of competition on the benefits of advance selling. I construct a two-period price-setting game with heterogeneous consumers and two firms that produce different brands. Some consumers prefer one brand, others prefer the other brand. Consumers derive common value...

This paper challenges the assumption commonly used in the theoretical literature on customization that consumers always get their ideal varieties when they purchase a customized product. I adopt Hotelling's horizontal differentiation model with two firms competing for a continuum of consumers....