This research investigates product life cycles in the commercial mainframe computer market. We show that empirical studies conducted at the product level are useful for investigating processes underlying product life cycles. We use hazard models with time-varying covariates to estimate the probability of product exit and Poisson models to estimate the probability of introduction. We measure the importance of different aspects of market structure, such as the degree of competitiveness, cannibalization, vintage, product niche and firm effects. We find some evidence of a relationship between the determinants of product exit and product entry.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
6124.
Length: Date of creation: Aug 1997 Date of revision: Handle: RePEc:nbr:nberwo:6124
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Boyan Jovanovic & Glenn MacDonald, 1994.
"Competitive Diffusion,"
NBER Working Papers
4463, National Bureau of Economic Research, Inc.
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Jovanovic, Boyan & MacDonald, Glenn M., 1988.
"Competitive Diffusion,"
Working Papers
88-29, C.V. Starr Center for Applied Economics, New York University.
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Jovanovic, B. & MacDonald, G.M., 1991.
"Competitive Diffusion,"
Papers
92-08, Rochester, Business - Financial Research and Policy Studies.