Skip Navigation

CESifo Economic Studies 2005 51(2-3):299-319; doi:10.1093/cesifo/51.2-3.299
This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Choi, J. P.
Right arrow Articles by Nahm, J.
Right arrow Search for Related Content
Related Collections
Right arrow L10 - General
Right arrow D80 - General
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© Ifo Institute for Economic Research, Munich, 2005

An Economic Analysis of Product Pre-announcements

Jay Pil Choi*, Eirik Gaard Kristiansen* and Jae Nahm*

* Department of Economics, Michigan State University 101 Marshall Hall, East Lansing, Michigan 48824-1038 e-mail: choijay{at}msu.edu.
* Norwegian School of Economics and Business Administration Hellev. 30 5045 Bergen, Norway e-mail: eirik.kristiansen{at}nhh.no.
* Department of Economics, HKUST Clearwater Bay, Kowloon Hong Kong e-mail: jnahm{at}ust.hk.

In markets with ongoing technological progress, buyers must choose when to buy. These buy/wait decisions may have a significant impact on innovators' and buyers' surpluses. In making these decisions, buyers often rely on information provided by firms. For instance, it is a common practice for firms to announce new products well in advance of actual market availability in information goods industries such as computer software. However, since sellers and buyers, in many cases, have opposing interests, it is difficult for a firm to make credible product pre-announcements. In this paper, we study when and how firms can make credible pre-announcements. We focus particularly on how firms can build a reputation for being honest. We also review the literature on the effects of product pre-announcement on market competition and discuss several open issues in need of further research. (JEL L1, D8)


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.