Simultaneous vs. Sequential Product Release

Posted: 23 Sep 2022

See all articles by Hojat abdolanezhad

Hojat abdolanezhad

Independent

Ningyuan Chen

University of Toronto at Mississauga - Department of Management; University of Toronto - Rotman School of Management

Setareh Farajollahzadeh

Rotman School of Management

Ming Hu

University of Toronto - Rotman School of Management

Date Written: September 11, 2022

Abstract

We study the profitability of a seller of two products under simultaneous vs. sequential releases. The seller and heterogenous customers have a prior belief of products' popularity before their debut. The sequential release allows customer engagement and learning about the product for an extended period. Customers learn about the attraction from their direct experience (private), reading critics' opinions (public), or reading other customers' reviews (social). Under private learning, the simultaneous release is more profitable than the sequential release for a price-taker seller. However, we show that the result reverses when the seller allows for public and social learning or when the seller can price products intertemporally.

Keywords: buzz economy, social learning, product release

JEL Classification: D83

Suggested Citation

abdolanezhad, Hojat and Chen, Ningyuan and Farajollahzadeh, Setareh and Hu, Ming, Simultaneous vs. Sequential Product Release (September 11, 2022). Available at SSRN: https://ssrn.com/abstract=4215955

Hojat Abdolanezhad

Independent

Ningyuan Chen

University of Toronto at Mississauga - Department of Management ( email )


Canada

University of Toronto - Rotman School of Management ( email )

105 St. George st
Toronto, ON M5S 3E6
Canada

Setareh Farajollahzadeh (Contact Author)

Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Ming Hu

University of Toronto - Rotman School of Management ( email )

105 St. George st
Toronto, ON M5S 3E6
Canada
416-946-5207 (Phone)

HOME PAGE: http://ming.hu

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
173
PlumX Metrics