When giving some away makes sense to jump-start the diffusion process

  title={When giving some away makes sense to jump-start the diffusion process},
  author={Donald R. Lehmann and Mercedes Esteban-Bravo},
This paper uses an analytical model to examine when it makes sense to provide incentives to innovators to adopt a new product. The model allows for separate segments of innovators and imitators, each of which follows a Bass-type diffusion process. Interestingly “seeding” the market is optimal for a limited range of situations and these do not appear to include those where there is a downturn in sales (chasm) as sales move from the first to the second segment. Research has frequently identified… CONTINUE READING

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