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Please use this identifier to cite or link to this item: http://hdl.handle.net/10016/12693

Google™ Scholar. Others By: Avagyan, Vardan - Esteban Bravo, Mercedes - Vidal-Sanz, Jose M.
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wb114011.pdf-- 2012-02-01 -- Available on Internet -- preprint303,34 kBAdobe PDFformato pdf
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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