When buyers are uncertain about product valuations for future consumption, the seller incurs an information disadvantage if it allows consumers to purchase late, after they (privately) learn their true consumption state. Despite this, when customers are heterogeneous, it may be optimal for the...

Firms have traditionally used price and advertising to signal product quality when consumers are not initially well-informed about qualities of competing sellers. While the Internet has increased the frequency at which buyers face unknown sellers, it also provides abundant information about...