The Market Evolution and Sales Takeoff of Product Innovations

@article{Agarwal2002TheME,
  title={The Market Evolution and Sales Takeoff of Product Innovations},
  author={Rajshree Agarwal and Barry L. Bayus},
  journal={Manag. Sci.},
  year={2002},
  volume={48},
  pages={1024-1041}
}
In contrast to the prevailing supply-side explanation that price decreases are the key driver of a sales takeoff, we argue that outward shifting supplyand demand curves lead to market takeoff. Our fundamental idea is that sales in new markets are initially low because the first commercialized forms of new innovations are primitive. Then, as new firms enter, actual and perceived product quality improves (and prices possibly drop), which leads to a takeoff in sales. To provide empirical evidence… Expand

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