Simultaneous competitor and customer diffusion: a market growth model based on market space and competition
AbstractThis paper adds addresses the interaction between competitive dynamics and market evolution. Specifically, it focuses on the development of the market of a new product, in terms of customer adoption as well as competitive entry. The objective of this paper is to develop a model for the growth stage of a new market that addresses the supplier and customer diffusion process and the interaction between them. The contribution of our approach is threefold: (i) the development of a competitor diffusion model, (ii) the combination of a competitor diffusion model with a customer diffusion model, recognizing the interplay between competitive entry and market-level diffusion, and (iii) the recognition that competitive entry effects in the diffusion model are endogenous, resulting from the entry decisions of firms.
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Bibliographic InfoPaper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2006-09.
Length: 32 pages
Date of creation: 20 Apr 2006
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-06 (All new papers)
- NEP-COM-2006-05-06 (Industrial Competition)
- NEP-CSE-2006-05-06 (Economics of Strategic Management)
- NEP-ENT-2006-05-06 (Entrepreneurship)
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