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http://hdl.handle.net/10016/12693
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| wb114011.pdf | -- 2012-02-01 -- Available on Internet -- preprint | 303,34 kB | Adobe PDF | |  |
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| Title: | Riding successive product diffusion waves : building a tsunami via upgrade-rebate programs |
| Author(s): | Avagyan, Vardan [vavagyan] Esteban Bravo, Mercedes [mesteban] Vidal-Sanz, Jose M. [jvidal] |
| Publisher: | Universidad Carlos III de Madrid. Departamento de Economía de la Empresa |
| Issued date: | Nov-2011 |
| URI: | http://hdl.handle.net/10016/12693 |
| Abstract: | We discuss how trade-in rebates can be used to manage product multigenerational innovation diffusion waves, and study the optimal behavior of the firm controlling the prices and rebates associated to product upgrades. We show how this strategy accelerates the diffusion and can lead to profit increments of about 5%. The strategy is profitable even when the rebate subsidizes the upgrades entirely. |
| Sponsor: | Research funded by two research projects, by the Comunidad de Madrid and the Spanish Government |
| Serie / Nº.: | UC3M Working papers. Business Economics 11-11 |
| Keywords: | New product diffusion Successive generations Trade-in Upgrades Optimal strategies |
| Appears in Collections: | Economists Online DEE - Working Papers. Business Economics. WB
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