High-tech rivalry typically involves sellers introducing a sequence of models each offering greater capacity/functionality. Given heterogeneous consumers this both creates and erodes any quality/novelty premium as innovation segments the market and imitation then populates the segments so...

This article explores pricing in a product lacking the conventional attributes of horizontal differentiation—physical location, design, color, etc.—and whose vertical characteristics are precisely specified and capable of rapid imitation. Web hosting exhibits low entry barriers, high...