In the context of subscription-based services, many technologies improve over time and service providers can provide increasingly powerful service upgrades to their customers, but at a launching cost, and the expense of the sales of existing products. We propose a model of technology upgrades...

During the summer of 2005, the Big Three U.S. automobile manufacturers offered a customer promotion that allowed customers to buy new cars at the discounted price formerly offered only to employees. The initial months of the promotion were record sales months for each of the Big Three firms,...