This dissertation consists of three essays on strategic and tactical issues in product design. The first essay presents a dynamic investment game in which firms that are initially identical develop assets which are specialized to different market segments. The model assumes there are increasing...

This thesis contains three separate essays that deal with word of mouth. In the first essay, "Promotional Chat on the Internet," we analyze the firms' incentives to anonymously supply positive reviews of products in chat rooms and other recommendation sites. This, in turn, lowers the credibility...