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Pricing of a new product with consumer learning

Author

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  • Sunku Hahn

Abstract

Sometimes firms sell their products only for a limited time. This phenomenon can be interpreted as the firms' strategy to increase their profits by prohibiting consumers from learning their personal values of the product as time passes. This explanation can also be used to explain the firms' strategy to set low prices on their new products for only a limited time.

Suggested Citation

  • Sunku Hahn, 2005. "Pricing of a new product with consumer learning," International Economic Journal, Taylor & Francis Journals, vol. 19(1), pages 37-49.
    • Handle: RePEc:taf:intecj:v:19:y:2005:i:1:p:37-49
    DOI: 10.1080/1351161042000320362
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