Innovation Adoption and Pricing in a Monopolistic Market

Topics:
Pricing Strategy
Tags:
Innovation Adoption,
Marketing,
Marketing Research,
Pricing,
Pricing Strategy
Source:
Catholic University of the Sacred Heart

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Overview: This paper analyzes, in a continuous time dynamic programming setting, the monopolist innovation adoption and pricing issue. The authors are concerned with product innovation in a durable good market where no potential entrant is threatening the monopolist, hence the adoption decision is not affected by strategic considerations. In the setup studied in this paper, innovation adoption is modeled as a continual process; one may think about the continual process of updating an existing product such as software packages or cars.

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Format: PDF | Size: 6KB | Date: May 2005 | Pages: 4

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