DEMAND FOR DIFFERENTIATED DURABLE PRODUCTS: THE CASE OF THE U.S. COMPUTER PRINTER MARKET.
This paper develops an estimation technique for analyzing the impact of technological change on the dynamics of consumer demand in a differentiated durable products industry. The paper presents a dynamic model of consumer demand for differentiated durable products that explicitly accounts for consum...
| Published in: | Economic Inquiry Vol. 51; no. 2; pp. 1277 - 1299 |
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| Format: | Case Study |
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Wiley-Blackwell
Apr2013
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=85761151&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 85761151 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Apr2013 vid: 51 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 85761151 10.1111/j.1465-7295.2012.00501.x ppf: 1277 ppct: 22 formats: fmt: – @attributes: type: T – @attributes: type: P size: 832KB tig: atl: DEMAND FOR DIFFERENTIATED DURABLE PRODUCTS: THE CASE OF THE U.S. COMPUTER PRINTER MARKET. aug: au: MELNIKOV, OLEG affil: Melnikov: Associate Professor, Department of Economics, Informatics and Management, Kharkiv Polytechnic Institute, Kharkiv 61002, Ukraine. Phone 38‐057‐737‐2810, Fax 38‐057‐707‐6601, E‐mail su: Technological innovations Consumption (Economics) Consumer behavior Computer printer industry Product quality New product development sug: subj: Technological innovations Consumption (Economics) Consumer behavior Marketing Consulting Services Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Computer Terminal and Other Computer Peripheral Equipment Manufacturing Computer and peripheral equipment manufacturing Computer, computer peripheral and pre-packaged software merchant wholesalers Computer printer industry Product quality New product development ab: This paper develops an estimation technique for analyzing the impact of technological change on the dynamics of consumer demand in a differentiated durable products industry. The paper presents a dynamic model of consumer demand for differentiated durable products that explicitly accounts for consumers' expectations of future product quality and consumers' outflow from the market that arises endogenously from their purchase decisions. The timing of consumers' purchases is formalized as an optimal stopping problem. A solution to that problem defines the hazard rate of product adoptions, while the nested discrete choice model determines the alternative-specific purchase probabilities. Integrating individual decisions over the population distribution generates rich dynamics of aggregate and product-level sales. The empirical part of the paper applies the model to data on the U.S. computer printer market for 1998-1999. The estimates support the hypothesis of consumers' forward-looking behavior, allowing for better demand forecasts and improved measures of welfare gains from introducing new products. ( JEL L11, C35, D91) pubtype: Academic Journal doctype: Case Study src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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