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The medium-term effects of unavailability

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Author Info
Avi Goldfarb ()

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Abstract

This paper develops a new method of identifying why current product unavailability has an effect on future brand choices. If the impact is solely due to changing preferences, then all competitors of the unavailable item gain proportionally to their share; if, however, there is lock-in, then the competitor that is chosen instead of the unavailable product should gain disproportionately more. Denial of service attacks at Yahoo, CNN, and Amazon show that unavailability has a medium-term impact. Lock-in drives 51% of the effect on Yahoo, but it dissipates much more quickly than the effect of changing preferences. Copyright Springer Science + Business Media, LLC 2006

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File URL: http://hdl.handle.net/10.1007/s11129-006-8128-8
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Publisher Info
Article provided by Springer in its journal Quantitative Marketing and Economics.

Volume (Year): 4 (2006)
Issue (Month): 2 (June)
Pages: 143-171
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:qmktec:v:4:y:2006:i:2:p:143-171

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Web page: http://www.springerlink.com/link.asp?id=111240

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Product availability; Stockouts; Internet; Denial of Service; Switching costs;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Avi Goldfarb, 2006. "State Dependence at Internet Portals," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 15(2), pages 317-352, 06. [Downloadable!] (restricted)
  2. Gandal, Neil, 2001. "The dynamics of competition in the internet search engine market," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1103-1117, July. [Downloadable!] (restricted)
  3. Fitzsimons, Gavan J, 2000. " Consumer Response to Stockouts," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 27(2), pages 249-66, September.
  4. Neil Gandal, 2001. "The Dynamics of Competition in the Internet Search Engine Market," Microeconomics 0012003, EconWPA. [Downloadable!]
  5. Keane, Michael P, 1997. "Modeling Heterogeneity and State Dependence in Consumer Choice Behavior," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 310-27, July.
  6. Neil Gandal, 2001. "The Dynamics of Competition in the Internet Search Engine Market," Department of Economics, Working Paper Series 1017, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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