Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The strategic creation and management of multiple product versions are frequently utilized to exploit heterogeneous buyers. This paper examines the versioning of an intermediate product when downstream retailers compete in the consumer market. Our analysis demonstrates a departure from conventional wisdom in final product markets: versioning an intermediate product reduces the profit of the upstream firm. This reduction occurs as the market power of the retailers is enhanced, leading to a decline in consumer and total welfare.