Dynamic Product Rotation in the Presence of Strategic Customers
Abstract
Dynamic product rotation is perceived as a useful lever to increase sales. The effect over individual customers is, however, unclear: more choice in the future may induce them to postpone a purchase if the current offer is not sufficiently appealing, hoping to buy a better product in the future; moreover, visiting a store to learn about a new product may be costly, thereby diminishing the value of product updates. We analyze a model of strategic...
Paper Details
Title
Dynamic Product Rotation in the Presence of Strategic Customers
Published Date
Jul 1, 2017
Journal
Volume
63
Issue
7
Pages
2092 - 2107
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