Munich Personal RePEc Archive

Using Demand Transfer Ratios to Infer Market Impacts of New Goods

Gayle, Philip and Lin, Ying (2022): Using Demand Transfer Ratios to Infer Market Impacts of New Goods. Forthcoming in: Economics Letters

[thumbnail of MPRA_paper_115749.pdf]

Download (431kB) | Preview


This paper introduces a measure we call a “demand transfer ratio” (DTR) that is a useful metric for inferring and communicating important market impacts associated with new product introductions. We show that the sign and magnitude of the demand transfer ratio can be used to infer whether the presence of new goods expanded aggregate demand in the relevant market and/or have a demand-cannibalizing effect on pre-existing products. In principle, our unit free DTR metric can be computed for the introduction and presence of new products across a wide cross section of industries for the purpose of comparing the demand transference impacts of various technology innovations and further studying what measurable attributes, strategies, and/or policies are associated with the most impactful innovations in an economy.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.