I analyze a model of directed search in which a consumer inspects a finite number of products sharing attributes with each others. The consumer discovers her valuation for the attributes of the inspected products and adapts her search strategy based on what she has learned. The consumer...

I analyze a model of directed search in which a consumer inspects a finite number of products sharing attributes with each others. The consumer discovers her valuation for the attributes of the inspected products and adapts her search strategy based on what she has learned. The consumer...

Current paper analyses the influence of the length of production technologies life-cycles on the relative intensity of investments of a multi-product monopolist into different types of innovations. This monopolist is developing new versions of the basic product continuously and simultaneously...

This paper analyzes the optimality of package bundling by focusing on the ?main and accessory?relationship between two goods. In particular, we consider option package bundling in which an optional good is valuable only if it is consumed together with a certain (nonoptional) base good. We...

Given the ubiquitous assumption of quasi‐linear utility in economic policy articles, this paper presents an overdue clarification of the implications of quasi‐linear utility for two‐market monopoly. The paper begins by deriving the demands facing a two‐market monopoly from a...

This paper provides insights about when versioning is an optimal strategy for information goods. Our characterization of this class of goods is that variable costs are invariant with quality, including the special case of zero variable costs. Our analysis assumes a monopoly firm that has an...