Academic
Publications
The Competitive Effects of a New Product Introduction: A Case Study 1

The Competitive Effects of a New Product Introduction: A Case Study 1,Jerry A. Hausman,Gregory K. Leonard

The Competitive Effects of a New Product Introduction: A Case Study 1   (Citations: 55)
BibTex | RIS | RefWorks Download
This paper analyzes the competitive effect of a new product introduction in the bath tissue industry. We break the overall competitive effect into two parts: the effect on the prices of existing products caused by the increased competition, and the additional variety effect resulting from the availability of the new product. Using retail scanner data from before and after the introduction, we directly estimate the price effects. Then, using retail scanner data from after the introduction only, we estimate the additional variety effect. Finally, we use the estimated post-introduction demand structure, along with an assumed model of competition, to estimate the price effects indirectly. By comparing the "indirect" estimates with the "direct" estimates, we are able to assess the validity of alternative models of competition among bath tissue manufacturers.
Cumulative Annual
    • ...Previous works have studied welfare eects associated to introduction of new products in structural model of competition (Petrin, 2002; Hausman and Leonard, 2002)...

    Stéphane Turollay. Spatial competition in the French supermarket industry

    • ...4 Petrin (2002), Hausman and Leonard (2002) and Nevo (2003) look at the consumer e¤ects of new product...

    Stijn Kelchtermanset al. Program duplication in higher education is not necessarily bad

    • ...4 We follow Hausman and Leonard (2002) by referring to equa-...
    • ...In addition to virtual price estimates, we need to allow for the possibility that new product introductions affect the prices of other products as well (Hausman 1994; Hausman and Leonard 2002)...
    • ...However, this approach requires additional assumptions regarding strategic interactions and equilibrium conditions that could be problematic (Hausman and Leonard 2002)...
    • ...Other studies use a similar approach (Hausman and Leonard 2002; Besanko, Dub ´ e, and Gupta 2005)...
    • ...As seen in table 5, our virtual price estimates are smaller in terms of percentage differences from actual prices compared to those found in Hausman (1994) and Hausman and Leonard (2002)...

    Geoffrey M. Pofahlet al. Valuation of New Products in Attribute Space

    • ...We generally follow the approach introduced by Hausman (1996) and utilized by Hausman and Leonard (2002) and by Dhar and Foltz (2005)...

    Jayson L. Lusket al. Some Economic Benefits and Costs of Vegetarianism

    • ...A dummy variable that takes a value of 1 in the …rst quarter of each year was included in (13) to control for a possible seasonality e¤ect...

    CHRISTIAN ROJAS. PRICE COMPETITION IN U.S. BREWING &ast

Sort by: