This paper shows that a seller can benefit from strategically “demarketing” its product, meaning visibly suppressing marketing efforts to reduce demand. Demarketing lowers expected sales ex ante but improves product quality image ex post, as the market attributes good sales to superior...

ldquo;Behavior-based personalizationrdquo; has gained popularity in recent years, whereby businesses offer personalized products based on consumers' purchase histories. This paper highlights two perils of behavior-based personalization in competitive markets. First, although purchase histories...