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- Tsuyoshi Toshimitsu (2017): Optimal Timing of Advertising with Demand Spillovers
We construct a model of a horizontally differentiated duopoly with demand spillovers in which advertising influences the willingness-to-pay of consumers for products and thereby affects not only market share, but also the level of market demand. ... We demonstrate that the optimal timing depends on the degree of demand spillovers and the product substitutability. In particular, if there are sufficient asymmetric demand spillovers between firms, there is a unique Stackelberg equilibrium in the advertising competition, in which the firm providing the product with small (large) demand spillovers chooses to invest in advertising early (late), regardless of the mode of competition.
RePEc:kap:jincot:v:17:y:2017:i:1:d:10.1007_s10842-016-0219-y Save to MyIDEAS - Avery Haviv & Yufeng Huang & Nan Li (2020): Intertemporal Demand Spillover Effects on Video Game Platforms
In this paper, we show sellers on the console video game platform generate a positive intertemporal spillover effect and expand the demand for other sellers, holding the set of platform adopters fixed. ... We find a sizable intertemporal demand spillover effect between games: A 1% increase in total copies sold on a platform leads to a 0.153% increase in the sales of other games in the next month (i.e., an elasticity of 0.153). Additional analysis suggests this demand spillover effect is reminiscent of habit formation on the consumer side, in that past purchases keep end users active on the platform.
RePEc:inm:ormnsc:v:66:y:2020:i:10:p:4788-4807 Save to MyIDEAS - Gavazza, Alessandro (2011): Demand Spillovers and Market Outcomes in the Mutual Fund Industry
These spillovers induce firms to compete by offering a greater variety of products rather than lower prices, and a natural form of industry concentration with few large firms offering many products can arise if spillovers are strong enough. ... The empirical analysis documents strong demand spillovers in the retail segment of the U.S. mutual fund industry, in which fees are non-trivial, families offer a large number of funds, and the market is quite concentrated. Instead, spillovers are weaker, fees are lower, families offer fewer funds, and the market structure is more fragmented in the institutional segment. The current design of employer-sponsored defined-contribution retirement plans likely accounts for these differential demand patterns between the retail and the institutional segments.
RePEc:pra:mprapa:30074 Save to MyIDEAS - Guler, Ali Umut (2023): Category expansion through cross-channel demand spillovers
Based on the Starbucks example, this paper documents such a demand spillover effect for coffee across channels and firms: The firm’s stores stimulate coffee demand in mass-market grocery channels, benefiting rival firms that target consumption at home. I show the spillover at the household level, as well as with retail scanner data, employing a demand model to account for supply-side responses. ... Evidence from other chains confirms the spillover, mainly from more premium brands with high demand-stimulating potential to lower-end mass products.
RePEc:eee:ijrema:v:40:y:2023:i:3:p:629-658 Save to MyIDEAS - Tsuyoshi Toshimitsu (2012): Quality Competition and a Demand Spillover Effect: A Case of Product Differentiated Duopoly
Employing the price-quality competition model in a horizontally differentiated products market, we analyze how a demand spillover effect associated with upgrading the quality level of a product affects the strategic relationship between firms and the property of a subgame perfect Nash equilibrium. In particular, we show that the strategic relationship depends on the degree of a demand spillover effect. ... Furthermore, we illustrate that there exists a natural Stackelberg equilibrium under asymmetric demand spillover effects that is Pareto superior to other equilibria.
RePEc:kgu:wpaper:89 Save to MyIDEAS - JIANSUO PEI & BO MENG & FEI WANG & JINJUN XUE & ZHONGXIU ZHAO (2018): Production Sharing, Demand Spillovers And Co2 Emissions: The Case Of Chinese Regions In Global Value Chains
China’s interregional spillover of carbon emissions and domestic supply chains. Energy Policy, 61, 1305–1321.], adopts the perspective of demand spillovers to provide new insights regarding the position of Chinese domestic-regions’ production in Global Value Chains (GVCs) and their associated CO2 emissions. ... The pattern of China’s regional demand spillovers across both domestic regions and countries is revealed by employing this new database.
RePEc:wsi:serxxx:v:63:y:2018:i:02:n:s0217590817400112 Save to MyIDEAS - Mi Hyun Lee & Sang Pil Han & Sungho Park & Wonseok Oh (2023): Positive Demand Spillover of Popular App Adoption: Implications for Platform Owners’ Management of Complements
As platform owners interact with end users and complementors, their demand-side characteristics and performance affect the overall value creation of ecosystems. This research investigated how the emergence of popular complements on a mobile communication platform impacts the usage of other complementary products by the platform’s end users and how platform owners can benefit from such demand spillovers. We identified two different forms of demand spillovers (i.e., backward and forward) and conceptualized how each subsequently affects platform expansion. ... These results support the existence of positive spillovers from popular complement adoption on a platform. Such positive within-platform spillovers are derived from both backward spillovers onto existing apps adopted before popular app adoption and forward spillovers onto new apps to be adopted after the uptake of favored apps.
RePEc:inm:orisre:v:34:y:2023:i:3:p:961-995 Save to MyIDEAS - Tsuyoshi Toshimitsu (2012): Strategic product R&D investment policy under international rivalry in the presence of demand spillover effects
In particular, we analyze an optimal R&D investment policy with regard to the two cases in the presence of demand spillover effects associated with improving the quality of a product. We show how optimality depends on the strength of demand spillover effects.
RePEc:kgu:wpaper:95 Save to MyIDEAS - Tran, Thi Anh-Dao & Diaw, Diadié & Rieber, Arsène (2012): International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia
Our contribution is to introduce demand spillovers that help market access to improve supply conditions.
RePEc:ris:integr:0579 Save to MyIDEAS - Tsuyoshi Toshimitsu (2014): Endogenous timing decisions for product R&D investment competition with demand spillovers in a horizontally differentiated duopoly
By focusing on the constructive and combative spillover effects of the firms’ investment in research and development (R&D), we develop a horizontally differentiated duopoly model in which R&D investment used to improve product quality influences consumer preferences and the choice of consumption goods. Applying the framework of endogenous timing decisions to the model, we examine the mutually beneficial timing of product R&D investment and demonstrate that, if there are asymmetric demand spillovers between the firms, a natural Stackelberg equilibrium persists in noncooperative product R&D investment competition in which the firm producing the product with weaker (stronger) demand spillovers moves first (second) to commit to the investment, regardless of the mode of competition. ... Furthermore, we address process R&D investment competition with technology spillovers under endogenous timing.
RePEc:kgu:wpaper:121 Save to MyIDEAS