Understanding the degree of cannibalization and competition in online and offline markets is important to firms’ product line designs. However, few empirical studies have measured both effects simultaneously or have examined the factors that determine the extent of cannibalization and competition. In this study, we develop an empirical model to identify cannibalization and competition effects s...

Using a Bass Diffusion model we investigate the effect of cannibalization within a hybrid manufacturing /remanufacturing/refurbishing system. The hybrid system consists of newly manufactured products, remanufactured products, and refurbished products. The impact of the collection, remanufacturing, and refurbishing ratios on economic performance are simulated and analyzed. We numerically calcula...

M of retail chains who seek to add new stores or close existing ones need to know the net impact of a store’s opening/closure on the overall chain performance. This requires inferring the extent to which each store generates incremental sales as opposed to competing with other stores belonging to the chain for the same set of customers. However, when the chain is experiencing a growth or a decl...

Wind and solar power depress market prices at times when they produce the most. This has been termed ‘cannibalization effect’, its magnitude established within economic literature on current future markets. Although it a substantial impact revenue of VRE technologies, cannibalization effect is neglected in capital budgeting literature, including portfolio- real options theory. In this paper, we...

There are two main effects from movie piracy: a cannibalization effect which reduces legitimate sales, and a promotional effect which increases word-of-mouth and stimulates sales. While these two effects have been hypothesized, the extant literature has not been able to disentangle them. We show how this decomposition can be measured using a hidden Markov model adapted from MOVIEMOD. Using data...

The potential for the cannibalization of new product sales by remanufactured versions of the same product is a central issue in the continuing development of closed-loop supply chains. We investigate the cannibalization question via auctions of new and remanufactured consumer and commercial goods. These auctions allow us to explore the impact of offering new and remanufactured products at the s...

A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm’s already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges....

Refurbishing has promising economic potential, yet firms remain wary of its potential cannibalization effect on new product sales. Firms need to make strategic choices in competitive settings, involving varying brand strengths and collection constraints. The current study provides an empirical characterization consumer behavior such complex which turn informs analytical model optimal pricing po...