Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168293
Authors: 
Zegners, Dainis
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Empirical Industrial Organization I No. B12-V2
Abstract: 
An important strategy to build a reputation is to practice introductory pricing. By selling at a lower introductory price, sellers can increase demand, induce more buyers to provide feedback, and build a reputation more quickly. I examine introductory pricing in the form of offering free content. I show that offering free content to build a reputation can be a double-edged strategy. It does not only attract buyers with a high preference, but also buyers with a low preference for the product.
JEL: 
L86
M31
D82
Document Type: 
Conference Paper

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