Footnote:
In: Forthcoming in Managerial and Decision Economics
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 12, 2016 erstellt
Description:
Advance selling occurs when consumers order a firm's product prior to the regular selling season. It reduces uncertainty for both the firm and the buyers and enables the firm to better forecast its future demand. The distinctive feature of this paper is that there are both experienced and inexperienced consumers, with the former knowing their valuations of the product in advance. We show that pre-orders from experienced consumers lead to a more precise forecast of future demand by the firm and that the optimal pre-order price may be at a discount or a premium relative to the regular selling price