In this paper, I investigate the question of how a …rm producing substitutes should coordinate price promotions of these products. I model price competition between two …rms, each producing two products that are horizontally di¤erentiated with respect to some characteristic. Consumers are divided into loyals, who always purchase their preferred product, and switchers who have heterogeneous pref...

This paper analyzes preemptive patenting in a two-stage real options game where an incumbent firm competes with a potential entrant firm for the patent of a substitute product in a product market with profit flow uncertainty. The incumbent suffers loss of monopoly in the product market if the entrant acquires the patent of a substitute product and later commercializes the product. Our patent-in...

BACKGROUND Dental stem cells in combination with implant materials may become an alternative to autologous bone transplants. For tissue engineering different types of soft and rigid implant materials are available, but little is known about the viability and the osteogenic differentiation of dental stem cells on these different types of materials. According to previous studies we proposed that ...

The challenges of the marketplace are met by product developers in two ways: development of innovative products and reducing product costs. Cost reduction alone is not a substitute for innovation. Cost-oriented product development is systematical engineering work, which requires an interdisciplinary approach, and needs to be efficient and effective. The costs that are of interest here are those...

This paper considers investment behavior of duopolistic firms subject to technological progress. It is assumed that initially both firms offer a homogeneous product, but after a stochastic waiting time they are able to realize a product innovation. Production capacities of both firms are product specific. It is shown that firms anticipate a future product innovation by under-investing (if the n...

Nowadays many well-known firms may produce similar products at different prices in order to remain in the competitive environment. The price differences may cause substitution condition which motivates the customers to substitute the similar cheaper product with an expensive one leading to an environment which is known as “customer-based price driven substitution”. This research proposes a new ...