Riding successive product diffusion waves :building a tsunami via upgrade-rebate programs

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.

MoreLess

Year of publication:	2011-11
Authors:	Avagyan, Vardan ; Bravo, Mercedes Esteban ; Vidal-Sanz, Jose
Institutions:	Departamento de Economía de la Empresa, Universidad Carlos III de Madrid
Subject:	New product diffusion \| Successive generations \| Trade-in \| Upgrades \| Optimal strategies

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	Business Economics Working Papers.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010861819