Using demand transfer ratios to infer market impacts of new goods

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