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Guseo, Renato and Mortarino, Cinzia (2010) Competition Modelling in Multi-Innovation Diffusions. Part II: Unbalanced Models. [Working Paper] WORKING PAPER SERIES, 10/2010 . , PADOVA (Inedito)

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Abstract (english)

Competition between rival brands within the same category gives rise to special competition/substitution effects of great interest for involved firms. In the companion article, we studied balanced models that are adequate to describe a homogeneous category for which within-brand and cross-brand word-of-mouth effects are indistinguishable. Conversely, in this paper we propose an unbalanced model that, besides separating these two imitative sources, also allows for a change in the parameter values of the first entrant as soon as the second one enters the market. We prove that our model has a closedform solution allowing parameters to be estimated with sales data. Moreover, we compare our model with other unbalanced models, both from a theoretical point of view and from an empirical one, by comparing their performance on pharmaceutical drug data.

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EPrint type:Working Paper
Anno di Pubblicazione:September 2010
Key Words:multivariate cellular automata, multivariate diffusion process, generalized Bass model, competition and intervention.
Settori scientifico-disciplinari MIUR:Area 13 - Scienze economiche e statistiche > SECS-S/01 Statistica
Struttura di riferimento:Dipartimenti > Dipartimento di Scienze Statistiche
Codice ID:7167
Depositato il:15 Sep 2014 14:26
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