The Product Life Cycle in the Commercial Mainframe Computer Market, 1968-1982
Rand Journal of Economics, Vol. 29, No. 4, Winter 1998
Posted: 1 Oct 1998
We investigate product life cycles in the commercial mainframe computer market. We use hazard models with time-varying covariates to estimate the probability of product exit and Poisson models to estimate the probability of introduction. We measure the importance of different aspects of market structure, such as the degree of competitiveness, cannibalization, vintage, product niche, and firm effects. We find evidence of a relationship between the determinants of product exit and product entry.
JEL Classification: L11, L22
Suggested Citation: Suggested Citation