We study a monopolistic firm which introduces two product versions sequentially in two periods. We analyze and compare the firm's decisions on the innovation level of the new version, the production quantities and prices of both versions, and the associated profit in four settings: when the...

“Bespoke” or mass customization strategy combines demand learning and preference learning. We develop an analytical framework to study the economic value of bespoke systems and investigate the interaction between demand learning and preference learning. We find that it is possible for demand...

A manufacturer can positively impact consumer utility by suggesting a manufacturer's suggested retail price (MSRP) that serves as a reference price. Thus, it seems puzzling that many manufacturers do not adopt MSRP in practice. In this paper, we offer a strategic explanation to this phenomenon...