Marketing researchers have traditionally modeled sales promotions by introducing a sales promotion dummy variable (sometimes accompanied by its interaction with prices) in the indirect utility specification. This approach has been useful in reproducing consumers' response to sales promotions but...

To model diffusion of new products in a way that is adequate to prescribe prices, we propose a modification of the standard random coefficients logit model that allows for changes in the distribution of the sample population due to differential adoption rates. Essentially, we use our structural...

Like any new product, private label entry increases competition within a category leading to downward pressure on both wholesale and retail prices. But, given the higher margins for private labels and potential bargaining benefits for retailers, they have incentives to help private labels gain...

We examine how production cost asymmetries affect the way firms compete in prices and quality in a vertical differentiation model. By introducing such asymmetries in marginal costs we obtain an endogenously determined quality ranking. We find that with cost differences, quality differentials...