Optimal Inter-Release Timing for Sequential Releases
- Tags:
- Management,
- Model,
- Strategy,
- Yale University
- Source:
- Yale School of Management
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Overview: Marketers have long recognized the opportunity to use timing as a segmentation device. In many markets, firms routinely use a sequential release strategy by introducing their higher-end products several months or even years before they release the lower-end products. While there has been much theoretical research on the optimal inter-release timing of sequential releases, there is little empirical research on this problem. This paper develops an econometric model to empirically solve the inter-release timing problem: it involves first developing and estimating a structural model of consumers' choice for sequentially released products and then using the estimates of the structural model to solve for the optimal inter-release time. The paper also develops a new strategy of model identification and estimation.
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Format: PDF | Size: 668KB | Date: Oct 2005 | Pages: 48
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