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 |
Keywords
- Dynamic model
- Externality
- Heterogeneous products
- Product launch