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| Author: | Krähmer, D. |
| Title: | Entry and experimentation in oligopolistic markets for experience goods |
| Journal: | International Journal of Industrial Organization
2003 : OCT, VOL. 21:8, p. 1201-1213 |
| Index terms: | Asymmetric information Entry conditions Oligopoly Econometric models |
| Freeterms: | Bandit problem |
| Language: | eng |
| Abstract: | This paper provides a new rationale for bundling based on informational leverage. Bundling a product of established quality to one of unknown quality can mitigate the problem of asymmetric information encountered in the latter market. The positive effect of market creation must be weighed against the negative effect of market delay. |
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