Model Exit in a Vertically Differentiated Market: Interfirm Competition versus Intrafirm Cannibalization in the Computer Hard Disk Drive Industry

B-Tier
Journal: Review of Industrial Organization
Year: 2004
Volume: 26
Issue: 1
Pages: 27-59

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

What characteristics of a product’s local market make its withdrawal more likely? This study investigates the importance of intrafirm “cannibalization” of a product’s demand by products manufactured by the same firm versus interfirm competition from others’ products. While both forces impact product withdrawal, cannibalization has a more robust and significant effect. Hedonic price regressions also reveal higher discounting of older models’ quality-adjusted prices, strengthening the argument for caution when treating list prices as proxies for transaction prices. Copyright Springer 2004

Technical Details

RePEc Handle
repec:kap:revind:v:26:y:2004:i:1:p:27-59
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-29