Price Elasticity Dynamics over the Adoption Life Cycle

Philip M. Parker

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Consumer Market Behavior and Pricing Economics of Agriculture and Food Markets Innovation Diffusion and Forecasting

Abstract

Little empirical research has been conducted to test the dynamic behavior of elasticities over the product life cycle. Competing specifications of price elasticity dynamics are examined to test the prevailing hypothesis that elasticities increase over the adoption life cycle or diffusion process. Though not supporting the hypothesis, the empirical results suggest that certain factors, including the degree to which a product is a necessity and faces competitive substitutes, affect elasticity dynamics.

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1983The diffusion of innovations 1969A New Product Growth for Model Consumer Durables 1986The theory and practice of econometrics 1985A Propositional Inventory for New Diffusion Research 1978The Structure of Economics: A Mathematical Analysis 1990New Product Diffusion Models in Marketing: A Review and Directions for Research 1972Innovative Behavior and Communication 1975Dynamic Price Models for New-Product Planning

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