Showing 1 - 10 of 12,209
We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...
Persistent link: https://www.econbiz.de/10011450700
Persistent link: https://www.econbiz.de/10000969455
Persistent link: https://www.econbiz.de/10011554063
We explore the consequence of quality unpredictability for the welfare benefit of new products, using recent developments in recorded music as our context. Digitization has expanded consumption opportunities by giving consumers access to the “long tail” of existing products, rather than...
Persistent link: https://www.econbiz.de/10012982522
We explore the consequence of quality unpredictability for the welfare benefit of new products, using recent developments in recorded music as our context. Digitization has expanded consumption opportunities by giving consumers access to the "long tail" of existing products, rather than simply...
Persistent link: https://www.econbiz.de/10012456005
We explore the consequence of quality unpredictability for the welfare benefit of new products, using recent developments in recorded music as our context. Digitization has expanded consumption opportunities by giving consumers access to the "long tail" of existing products, rather than simply...
Persistent link: https://www.econbiz.de/10011979989
This paper models the pricing of digital experience goods such as online video in a vertically segmented market under threat of piracy. By definition consumers know the true fit of an experience good only after they have consumed it and piracy offers an illegal consumption method. We develop a...
Persistent link: https://www.econbiz.de/10014076916
We model the potential for a company bundling experience goods to obtain an advantage over conventional individual sales. Using the streaming video industry as an example, we consider the unknown attributes of films. Bundling services can be beneficial by guiding consumers' product selections,...
Persistent link: https://www.econbiz.de/10014358253
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10010365881
Persistent link: https://www.econbiz.de/10009737011