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Consumer review systems have become an important marketing communication tool through which consumers share and learn product information. This paper analyzes firms' review system design and product pricing strategies. We show that firms' optimal strategies critically depend on contextual characteristics such as product quality, product popularity, and consumer misfit cost. Our results suggest that...
The book industry is undergoing a digital transformation enabled by the Internet and e-book technology, which offers a novel channel for delivering books to consumers who mostly purchase paper books from physical or online bookstores. With a game theory model that introduces the concepts of paper book market asymmetry and e-book market asymmetry, we examine how the entry of an e-book seller affects...
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