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(Un)finished products
We study a seller’s choice between offering a finished or unfinished product. Finishing the product is costly and fully reveals its value to prospective buyers, while selling it unfinished introduces uncertainty about the product’s value and requires buyers to complete development themselves. Under symmetric information—i.e., when the seller also observes the value of a finished product—it is optimal to offer a finished product whenever development costs are low. Under asymmetric information, however, finishing the product introduces informational frictions. We characterize the conditions under which the product is offered finished despite these frictions, in order to discourage consumer search.
Date:
14 November 2025, 14:15
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room G
Speaker:
Francisco Poggi (University of Mannheim)
Organising department:
Department of Economics
Part of:
Nuffield Economic Theory Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Edward Valenzano
