Price guarantee for advance selling in the presence of preorder-dependent social learning

In this paper, we study the price guarantee policies of a seller practicing the advance selling strategy in the presence of preorder-dependent social learning. There are two types of consumers in the market. In the advance selling period, the high-type consumers arrive and make the preorder decision based on their valuation of the product. In the regular selling period, the low-type consumers arrive and make the purchase decision based on their...