We develop a framework in which: (i) a firm can have a new product tested publicly before launch; and (ii) tests vary in toughness, holding expertise fixed.  Price flexibility boosts the strong positive impact on consumer beliefs of passing a tough test and mitigates the strong negative impact...

We examine some of the factors that might influence the quality of information produced in discussion groups on the internet, such as USENET and the WELL. In particular, we look at the impact of various different pricing structures, and compare regimes in which anonymity is enforced with regimes...

This paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a payoff only after some exponentially distributed random time. Because of free-riding, there is an inefficiently low level of experimentation in any equilibrium where the players use...