RT info:eu-repo/semantics/article
T1 On the Modelling of Price Effects in the Diffusion of Optional Contingent Products
A1 Martín Herrán, Guiomar
A1 Taboubi, Sihem
AB In this chapter, we study the pricing strategies of firms in a multi-product diffusionmodel where we use a new formalization of the price effects. More particularly, weintroduce the impact of prices on one of the factors that affect the diffusion of newproducts: the innovation coefficient. By doing so, we relax one of the hypotheses inthe existing literature stating that this rate is constant. In order to assess the impact ofthis functional form on the pricing policies of firms selling optional contingent products,we use our model to study two scenarios already investigated in the multiplicative formmodel suggested by Mahajan and Muller (1991) (M&M).We follow a ‘logical experimentation’ perspective by computing and com-paring the results of three models: (i) The M&M model, (ii) a modifiedversion of M&M where the planning horizon is infinite, and (iii) our model,where the new formalization of the innovation effect is introduced. Thisperspective allows us to attribute the differences in results to either thelength of the planning horizon, or to our model’s formalization. Besides itscontribution to the literature on pricing and diffusion, this paper highlights the sensitiv-ity of results to the hypothesis used in product diffusion modelling and could explainthe mixed results obtained in the empirical validations of diffusion models (Mesak,1996).
PB Springer
SN 0884-8289
YR 2019
FD 2019
LK http://uvadoc.uva.es/handle/10324/37935
UL http://uvadoc.uva.es/handle/10324/37935
LA eng
NO Games in Management Science-Essays in honor of Georges Zaccour. P.O. Pineau, S.P. Sigué, S. Tabubi (eds.). Springer.  Doi. 10.1007/978-3-030-19107-8. ISBN: 978-3-030-19106-1
DS UVaDOC
RD 02-dic-2024