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- W2109756883 abstract "In this paper, we develop a model of experience goods pricing with independent private valuations. We show that the optimal paths of sales and prices take qualitatively dierent shapes for dierent products. If the buyers are initially optimistic, then the prices are declining over time. If the buyers are initially pessimistic, then the optimal prices are initially low followed by higher prices that extract goodwill from the buyers with a high willingness to pay. We also characterize the optimal commitment price path for the monopolist and the steady state equilibrium when there is turnover on the buyer side of the market." @default.
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- W2109756883 date "2004-01-01" @default.
- W2109756883 modified "2023-09-25" @default.
- W2109756883 title "Monopoly Pricing of Experience Goods" @default.
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