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W2790804750 abstract "This chapter analyses market suppliers’ decisions relating to the pricing, promotion, and creation of capacity to manufacture goods that embody product innovations. The discussion encompasses durable and non-durable products; monopoly and oligopoly; horizontal and vertical differentiation; and original, new-to-market, and new-to-firm products. Firms may have incentives to further innovate after the launch of the original product; this will lead to lower prices and to greater demand and output. This may also imply greater capacity creation (in some location). It is found, however, that the incentives of the originator and those of potential new entrants may differ and will tend to lead to lower prices when there are many suppliers as opposed to when there are fewer. This means that, if there are more innovators, the quantity supplied will be higher; creation of capacity may also be greater, but findings on promotional expenditures are not conclusive." @default.
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W2790804750 date "2018-03-22" @default.
W2790804750 modified "2023-09-26" @default.
W2790804750 title "Capacity Creation, Pricing, and the Promotion of Product Innovations" @default.
W2790804750 doi "https://doi.org/10.1093/oso/9780198816676.003.0006" @default.
W2790804750 hasPublicationYear "2018" @default.
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