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Launch Strategies for Upgraded Products with Consideration of Selfcannibalization

机译:考虑到自共脉动,推出升级产品的策略

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This paper studies optimal pricing and timing of a firm to launch an upgraded product to maximize its revenue, considering self-cannibalization between two generation products. Heterogeneous customers arriving to the market compare utilities resulted from existing and new products and try to maximize their utilities. We model the firm and customers’ decision-makings as a two-stage dynamic game and its equilibrium results are derived. Our numerical analysis shows that technology innovation of the new product significantly improves the firm’s revenue performance. Technology innovation brings added value to the new product, which allows a higher pricing for the upgraded product. However, it has no impact on the firm’s optimal launch time. In addition, depreciation speed of the product has a negative impact on the firm’s total revenue. However, it does not affect optimal launch strategies, which include optimal launch price and launch time.
机译:本文研究了公司的最佳定价和时机,以推出升级产品以最大限度地提高其收入,考虑到两代产品之间的自匹皮化。到达市场的异质客户比较现有和新产品导致的公用事业,并尝试最大限度地提高其公用事业。我们将公司和客户的决策模拟为两阶段动态游戏及其均衡结果。我们的数值分析表明,新产品的技术创新显着提高了公司的收入业绩。技术创新为新产品带来了额外的价值,这对升级产品进行了更高的定价。但是,它对公司的最佳发射时间没有影响。此外,产品的折旧速度对公司的总收入产生负面影响。但是,它不会影响最佳发射策略,包括最佳的发射价格和发射时间。

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