In some markets consumers seek exclusive consumption experiences, yet in these markets businesses sometimes market their goods widely and at low prices during an introduction period. We use a two-period game-theoretic model to provide a signaling explanation for this phenomenon. In our model,...

We study the introductory signalling strategy for a durable product that faces optimistic expectations among customers about price declines over time. The firm introducing the product knows that experiential learning is low for the product. However, customers, being uncertain about the extent of...