TY  - GEN
AB  - We consider a capital accumulating incumbent firm which produces an
established product and has the option to introduce an improved substitute
product to the market by incurring adoption costs. We find that depending
on the initial capacities on the established market and the value of adoption
costs, three scenarios are possible, namely introducing immediately,
later or abstaining from product introduction. In case of delay of product
introduction, the incumbent reduces capacities for the established product
before the new product is introduced. We encounter Skiba points where
the incumbent is indifferent between two of the three scenarios and use a
bifurcation analysis in order to characterize the transition towards different
steady states.
DA  - 2018
DO  - 10.4119/unibi/2917390
KW  - Product innovation
KW  - Capacity dynamics
KW  - Multi-product firm
KW  - Free endtime problem
KW  - Delayed product introduction
LA  - eng
PY  - 2018
SN  - 2196-2723
SP  - 35-
TI  - Delaying Product Introduction: A Dynamic Analysis with Endogenous Time Horizon
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29173905
Y2  - 2024-11-22T05:02:00
ER  -