Film studios occasionally withhold movies from critics before their release. Because the unreviewed movies tend to be below average in quality, this practice provides a useful setting in which to test models of limited strategic thinking: Do moviegoers seem to realize that no review is a sign of...

This article studies the implications of experience curves and brand loyalty for optimal dynamic pricing policy. In a continuous time model, we synthesize several results from the literature on open loop equilibria. Specifically, we show that prices should decrease over time for high discount...

We examine, in a strategic setting, the broad issue of how retail channel structures--retail monopoly versus retail duopoly--impact a manufacturer's optimal new product design, both in terms of engineering design specifications as well as manufacturer and retailer profits. Our strategic...

A low-cost incumbent may limit price to informatively signal her cost to an uncertain potential entrant, and therefore deter entry. We enrich this model by investigating the strategic pricing behavior of the incumbent when she operates in multiple markets. We demonstrate that the low-cost...

Existing single-adoption diffusion models assume a static (constant) ceiling on the number of adopters, that is, a constant population of potential adopters, over the entire time frame of the diffusion process. However, for most innovations this assumption is tenuous. Rather, the ceiling, or the...

This paper presents a model for analyzing the impact of joint decision policies on channel coordination in a system consisting of a supplier and a group of homogeneous buyers. The joint decision policy characterized by the unit selling price and the order quantity is coordinated through quantity...

This empirical study investigates whether brand extensions should be introduced early or late in the life cycle of a product category. The longitudinal/cross-category sample of frequently purchased consumer brands is used to analyze how the performance of brand extensions depends on order of...