Abstract
This paper examines the model launch and withdrawal decisions of the major digital camera makers for the period 1996-1999. These manufacturers produce differentiated products and some have the experience of participating in a similar market-the film camera market. This paper investigates to what extent the following four factors affect firms' decisions to launch a new model of digital camera: the effects of competition with "within-brand" models; the effects of competition with "cross-brand" models; the level of experience in the film camera market; and market conditions. The empirical findings suggest that good market conditions can accommodate more products, which has a positive effect on product launches. On the other hand, existing cross-brand models have a negative effect on product launches, while within-brand models and experience in similar markets have an ambiguous effect on product launches.
| Original language | English |
|---|---|
| Pages (from-to) | 1233-1249 |
| Number of pages | 17 |
| Journal | International Journal of Industrial Organization |
| Volume | 26 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - Sept 2008 |
| Externally published | Yes |
Funding
sI thank Matthew Shum and an anonymous referee for their insightful comments and suggestions. This paper is a chapter of my Ph.D. dissertation. I am very grateful to my committee: Eugene Choo at the University of Calgary, Frank Mathewson and Ignatius Horstmann at the University of Toronto. Bingyong Zheng and Jimmy Chan at Shanghai University of Finance and Economics also made very useful suggestions. All remaining errors are mine.
Keywords
- Dynamic model
- Externality
- Heterogeneous products
- Product launch