The Competitive Effects of a New Product Introduction: A Case Study

The Competitive Effects of a New Product Introduction: A Case Study This paper analyzes the competitive effect of a new product introduction. We break the overall competitive effect into two parts: the effect on the prices of existing products due to increased competition, and the effect of having additional product variety. Using data from both before and after the introduction, we directly estimate the price effects and the additional variety effect. Then, using only the estimated post–introduction demand structure, along with an assumed model of competition, we estimate the price effects indirectly. By comparing the ‘indirect’ and ‘direct’ estimates, we assess the validity of alternative models of competition for the industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Industrial Economics Wiley

The Competitive Effects of a New Product Introduction: A Case Study

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Publisher
Wiley
Copyright
Blackwell Publishers Ltd 2002
ISSN
0022-1821
eISSN
1467-6451
D.O.I.
10.1111/1467-6451.00176
Publisher site
See Article on Publisher Site

Abstract

This paper analyzes the competitive effect of a new product introduction. We break the overall competitive effect into two parts: the effect on the prices of existing products due to increased competition, and the effect of having additional product variety. Using data from both before and after the introduction, we directly estimate the price effects and the additional variety effect. Then, using only the estimated post–introduction demand structure, along with an assumed model of competition, we estimate the price effects indirectly. By comparing the ‘indirect’ and ‘direct’ estimates, we assess the validity of alternative models of competition for the industry.

Journal

The Journal of Industrial EconomicsWiley

Published: Sep 1, 2002

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