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Modeling Generational Transitions from Aggregate Data

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Author Info
Franses, Ph.H.B.F.
Stremersch, S. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

Using only aggregate sales data, the model we propose decomposes the diffusion processes of the respective technological generations and tests if different technological generations have different diffusion parameters. It also estimates the location of the generational transition from the old to the new technology. We develop a routine to test whether the maturation point of the old generation occurs before or after the transition to a new technological generation. Finally, we show that, when the aggregate sales data are generated by multiple technological generations, our model does better in forecasting than a single-regime Bass model.

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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2002-49-MKT Revision_Date: 2009-11-06.

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Date of creation: 16 May 2002
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Handle: RePEc:dgr:eureri:2002196

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Related research
Keywords: technological generations; regime-switching models; diffusion modeling;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. P.H. Franses, 2002. "On the diffusion of scientific publications; the case of Econometrica 1987," Econometric Institute Report 268, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
  2. Franses, Ph.H.B.F., 2002. "On the diffusion of scientific publications; the case of Econometrica 1987," Econometric Institute Report EI 2002-16 Revision_Date:, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
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This page was last updated on 2009-12-16.


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