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• W2163315840 abstract "This paper provides a new rationale for bundling based on informational leverage. It is demonstrated that physically tying a product of established quality to one of unknown quality may mitigate the problem of asymmetric information encountered in the latter market. Leveraging reputation in one market to provide information about product quality in a second market can have profound implications for the timing of new product introductions. Bundling motivated by informational leverage can enhance efficiency by increasing consumer's access to costly information. When the possibility of endogenous timing of product introduction is considered, however, the welfare consequences of bundling are ambiguous. The positive effect of market creation must be weighed against the negative effect of market delay." @default.
• W2163315840 created "2016-06-24" @default.
• W2163315840 creator A5050705966 @default.
• W2163315840 date "1996-01-01" @default.
• W2163315840 modified "2023-09-23" @default.
• W2163315840 title "Informational Leverage and the Endogenous Timing of Product Introductions" @default.
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• W2163315840 doi "https://doi.org/10.7916/d8pr83gc" @default.
• W2163315840 hasPublicationYear "1996" @default.
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