Determination of the merchandise assortment is an important decision for retailers since the composition and depth of the product mix greatly impact both unit sales and costs. This paper considers how Probabilistic Selling (PS), an emerging marketing strategy, impacts the type and number of...

Information goods are characterized by high fixed (first-copy) costs, but very low costs for the production of additional copies. Marginal costs of electronically-delivered information goods have been further reduced by the remarkable recent decline in computing and digital communication costs....