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Innovations and technological comebacks

Author

Listed:
  • Renaud Foucart

    (HU Berlin - Humboldt-Universität zu Berlin = Humboldt University of Berlin = Université Humboldt de Berlin)

  • Cheng Wan

    (Shanghai University of Finance and Economics)

  • Shidong Wang

    (University of Oxford)

Abstract

Motivated by the comeback of the vinyl, we explore the idea that the success of a third-generation technology (digital music) can have adverse effects on the second generation (CD) but positive effects on the first one (vinyl). This phenomenon arises in a market if the process of innovation is not transitive. In particular, we identify a condition such that the second generation completely substitutes the first one, the third generation completely substitutes the second one, but the first and the third generations have enough complementarities to coexist. Beyond the case of music industry, our model has implications on product positioning and product design.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Renaud Foucart & Cheng Wan & Shidong Wang, 2018. "Innovations and technological comebacks," Post-Print hal-02887611, HAL.
    • Handle: RePEc:hal:journl:hal-02887611
    DOI: 10.1016/j.ijresmar.2017.11.002
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    Cited by:

    1. Demirci, Ece Zeliha & Erkip, Nesim, 2024. "Integrating efforts for product development and market penetration," European Journal of Operational Research, Elsevier, vol. 312(3), pages 927-937.
    2. Martin Heinberg & Constantine S. Katsikeas & H. Erkan Ozkaya & Markus Taube, 2020. "How nostalgic brand positioning shapes brand equity: differences between emerging and developed markets," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 869-890, September.

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