Shareware competition : Selling an experience ∗

  title={Shareware competition : Selling an experience ∗},
  author={Alexandre Gaudeul},
  • Alexandre Gaudeul
  • Published 2004
A firm may allow customers to learn the value of its product prior to buying it. This increases their willingness to pay, even though it also leads some not to buy. That strategy may also be used as a competitive tool to increase its product’s attractiveness. This paper examines competition between ex-ante identical firms that sell horizontally differentiated and mutually exclusive experience goods. Customers incur set-up costs when buying a good, but those set-up costs are partly recoverable… CONTINUE READING
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