Choosing Strategies for New Products Using Market-Level Data
This chapter shows how the firm can coordinate its new product designs, production processes, and pricing strategies when only secondary (market-level) data are available. In particular, it examines the conditions under which firms should use price or other market signals (e.g., product warranties) when they introduce new products into the marketplace.
Keywords: barriers to entry, barriers to exit, hedonic pricing, law of one price, market segments, multiproduct firms, new products, signals
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