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The medium-term effects of unavailability

  • Avi Goldfarb

    ()

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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Article provided by Springer in its journal Quantitative Marketing and Economics.

Volume (Year): 4 (2006)
Issue (Month): 2 (June)
Pages: 143-171

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Handle: RePEc:kap:qmktec:v:4:y:2006:i:2:p:143-171
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=111240

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  1. 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.
  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.
  3. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
  4. Avi Goldfarb, 2006. "State Dependence at Internet Portals," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 317-352, 06.
  5. Fitzsimons, Gavan J, 2000. " Consumer Response to Stockouts," Journal of Consumer Research, University of Chicago Press, vol. 27(2), pages 249-66, September.
  6. Abel P. Jeuland, 1979. "The Interaction Effect of Preference and Availability on Brand Switching and Market Share," Management Science, INFORMS, vol. 25(10), pages 953-965, October.
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