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Open Access item Transitory saturation and the frequency of new product introductions
|Citation:||37th Annual Conference EARIE: (2010)|
|Abstract:||The goal of this paper is to analyze the e¤ect of transitory satura- tion on the frequency of new product introductions. We focus on those product categories in which a specific product is purchased only once but repeat purchases are made in the same product category: like movies, books, concerts, computer games, etc. The model considers infinitely- lived, forward-looking consumers and firms. We show that a monopolist may introduce new product too frequently with respect to both the first and the second best. We also show that, provided firms share enough information about their production plans, competition exacerbates the tendency towards excessively frequent introduction of new products.|
|Appears in Collections:||(IAE) Comunicaciones congresos|
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