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New Product Introduction And Market Evolution

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  • John Hartwick

Abstract

We solve for an S-shaped schedule for market size for a new product that undergoes gradual widespread adoption. We hypothesize that the speed of market expansion is positively related to the current proÂ…t per unit being produced. In a mature market the unit profit is relatively low.

Suggested Citation

  • John Hartwick, 2011. "New Product Introduction And Market Evolution," Working Paper 1280, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1280
    as

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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1280.pdf
    File Function: First version 2011
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    References listed on IDEAS

    as
    1. Bianchi, Marina, 2002. "Novelty, preferences, and fashion: when goods are unsettling," Journal of Economic Behavior & Organization, Elsevier, vol. 47(1), pages 1-18, January.
    2. Silvia Bertarelli & Roberto Censolo, 2006. "Taste For Variety, Taste For Novelty And Price Behaviour," Metroeconomica, Wiley Blackwell, vol. 57(1), pages 93-111, February.
    3. Frank M. Bass & Trichy V. Krishnan & Dipak C. Jain, 1994. "Why the Bass Model Fits without Decision Variables," Marketing Science, INFORMS, vol. 13(3), pages 203-223.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    product cycle; successful innovation;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other

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