M by the proliferation of multifunction products, we investigate product portfolio decisions of a single firm by analyzing the impact of three major factors. First, because multifunction products provide complete or partial functionalities of single-function products, we incorporate substitution or cannibalization effects between the potential products. Second, we explicitly model the variable ...

Pricing and product line strategies based on versioning and introducing successive generations are widely used by software manufacturers. Such product release and renewal strategies, which aim to expand market share and implement more e¤ective price discrimination, also expose …rms to the risk of cannibalization of their higher quality products by lower quality versions, and of current generati...

The internet has made it easier for customers to find and buy a wide variety of products. This may lead to a “long tail” effect as more customers buy low-volume products. However, the internet has also made it easier for customers to find out which products are most popular. This could lead to a “steep tail” effect as customers flock towards the most popular products. Using data from a field ex...

I this paper we characterize the impact of production technology on the optimal product line design. We analyze a problem in which a manufacturer segments the market on quality attributes and offers products that are partial substitutes. Because consumers self-select from the product line, product cannibalization is an issue. In addition, the manufacturer sets a production schedule in order to ...

Kemal Altinkemer Krannert Graduate School of Management Purdue University [email protected] Wenqi Shen Krannert Graduate School of Management Purdue University [email protected] The video game industry has attracted more and more attention not only from technology giants such as Microsoft but also from software developers and private investors. Information technology dictates how game console pro...

In this appendix, we derive the pricing recommendations found in Chapter Five. Through five cases, we illustrate the effects of various pricing schemes on the behavior of commands and wings and the cost of that behavior to the Air Force. These cases were chosen to capture many of the characteristics of repair activities within the Air Force depot maintenance system. In the first case, the DLR h...

As franchisors add same brand outlets to a geographical market, the resulting encroachment from multiple locations creates con ict via revenue cannibalization. We empirically explore the possibility that encroachment could, in fact, have the opposite e ect by increasing revenues as more same brand units are added. In particular, we propose that same brand units create a spillover e ect that can...