TY  - JOUR 
TI  - Product innovation and adoption in markert equilibrium : the case of digital cameras
JO  - Borradores de Economía y Finanzas;No. 18 - Marzo 2008
PB  - Universidad Icesi
PY  - 2008
AB  - This paper contains an empirical dynamic model of supply and demand in the market
for digital cameras with endogenous product innovation. On the demand side, heterogeneous
consumers time optimally the purchase of goods depending on the expected
evolution of prices and characteristics of available cameras. On the supply side, firms
introduce new camera models accounting for the dynamic value of new products and the
optimal behavior of consumers. The model is estimated using data from the market for
digital cameras and the estimated model replicates rich dynamic features of the data. The estimated model is used to perform counterfactual computations, which suggest that more competition or lower product introduction costs generate more product variety but lower average product quality.
KW  - FACULTAD DE CIENCIAS ADMINISTRATIVAS Y ECONÓMICAS
KW  - DEPARTAMENTO DE ECONOMÍA
KW  - DURABLE GOODS
KW  - DYNAMIC DEMAND
KW  - INNOVATION
KW  - INNOVACIONES
KW  - DINÁMICA
KW  - MERCADO
KW  - Economía
KW  - Econometría
KW  - Economics
KW  - Econometrics models
UR  - http://hdl.handle.net/10906/65260
ER  -