Erratum to Mahajan, Vijay, Robert A. Peterson. 1978. Innovation diffusion in a dynamic potential adopter population. Management Sci. 24 (15) 1589--1597.

A review of the literature from many disciplines reveals conceptual agreement that individuals choose among alternatives by comparing the attributes of the alternatives in a sequential process. Yet in almost all the published empirical work the model used is a simultaneous compensatory model...

Existing single-adoption diffusion models assume a static (constant) ceiling on the number of adopters, that is, a constant population of potential adopters, over the entire time frame of the diffusion process. However, for most innovations this assumption is tenuous. Rather, the ceiling, or the...

In multi-attribute models in marketing, a consumer's preference for a brand in a product class is expressed as a weighted sum of the brand's attribute values. However, marketing is abundant with examples where two brands may have approximately the same attribute values but enjoy very different...

A new stochastic brand choice model, the Bargain Value Model, is introduced. Using consumer panel data, the model predicts an individual household's probability of purchasing various brands as a function of the prevailing price of those brands. Based on consumer behavior constructs, the model...

We explore the rational effect of price variation on sales and consumption in markets where consumers are uncertain about the future price of goods. We first derive an optimal ordering policy which expresses the amount a consumer should purchase and consume in a given period as a function of the...

A model of the diffusion process is developed which recognizes (1) the interaction between adopters and non-adopters and (2) the influence of external information sources such as advertising. The model is extended by incorporating the effects of repeat purchasing. The models written by the...

This paper draws on econometrics, von Neumann-Morgenstern utility theory, stochastic choice theory, and consumer behavior to develop five basic axioms or postulates of stochastic choice behavior. These axioms imply the existence and uniqueness of a preference function which identifies how...

While it provides excellent descriptions of behavior, existing consumer research on information seeking and processing largely fails to explain why consumers engage in various types of activities. This paper presents an economic framework for measuring costs/benefits of search behavior which can...

A stochastic consumer behavior model is constructed transforming Nicosia's (Nicosia, F. M., 1966. Consumer Decision Processes. Prentice-Hall, Englewood Cliffs, New Jersey.) postulates into probability hypotheses. Nicosia's deterministic model is obtained in the mean evolutions and...