The Effects of Product Ageing on Demand: The Case of Digital Cameras

The static differentiated product demand model when applied to products with rapid product turnover and declining prices, yields implausible results. One response is to explicitly model the inter-temporal choices of consumers but computational demands require restrictive assumptions on consumer heterogeneity and limits on the characteristics included in the model. We propose, instead, to supplement the static model with a control for the age that each product has been in the market. This approach is applied to the US digital camera market and we find we obtain more plausible estimates. Our results are consistent with inter-temporal price discrimination by firms. Furthermore, our results suggest that ignoring the effects of product ageing may result in substantially overestimated price elasticities and technological progress and underestimated price-cost markups.Discrete Choice; Demand Dynamics; Forward-Looking Behavior; Heterogeneous Preferences

The Effects of Product Ageing on Demand: The Case of Digital Cameras

The static differentiated product demand model when applied to products with rapid product turnover and declining prices, yields implausible results. One response is to explicitly model the inter-temporal choices of consumers but computational demands require restrictive assumptions on consumer heterogeneity and limits on the characteristics included in the model. We propose, instead, to supplement the static model with a control for the age that each product has been in the market. This approach is applied to the US digital camera market and we find we obtain more plausible estimates. Our results are consistent with inter-temporal price discrimination by firms. Furthermore, our results suggest that ignoring the effects of product ageing may result in substantially overestimated price elasticities and technological progress and underestimated price-cost markups

Estimating the Impact of a Potential Process Innovation and the Optimal Strategy of Licensing

This paper explores the implication of a potential quality-improving innovation through its application to digital camera market. It simulates post-innovation prices and sales of cameras and quantitatively estimates the economic impacts of the innovation based on a random coefficient structural model and existing market data. The results show that the potential gain to producers and consumers from the new technology varies substantially depending on the superiority of the technology and the composition of the adopters. The inventor of the innovation benefit more by licensing it to a larger camera maker and profits increase in the number of adopted camera makers.Innovation, Adoption, Product Differentiation, Technology Licensing, Welfare EDIRC Provider-Institution: RePEc:edi:smlatau

Influences of Cr and Co on the Growth of Thermally Grown Oxide in Thermal Barrier Coating during High-Temperature Exposure

Thermal barrier coating (TBC) is a critical material in the aerospace domain to increase the lifetime of gas turbine components subjected to thermal load. The properties of TBC are strongly related to the growth of thermally grown oxide (TGO) whose main constituent is Al2O3. However, the oxidation of Cr and Co can affect the growth of TGO, which is not studied sufficiently. In this paper, high-temperature exposure at 1000 °C was performed to investigate the effect of Cr and Co oxides on TGO growth. The morphology and composition analysis of the interface between the ceramic top coat and the bond coat (TC/BC) were investigated by using scanning electron microscopy (SEM) and the energy dispersion spectrum (EDS). The thermodynamics and kinetics of oxidation were analyzed. The results indicated that the oxidation kinetics basically followed the sub-parabolic law with exposure time. Additionally, the major factor affecting the formation of oxides was the diffusion rate at the initial stage of exposure, then oxides depended on thermodynamics, and the oxidation was influenced by both of them in the last stage. The major elements to be oxidized were different at different stages. Moreover, the replacement reaction of Cr2O3 and the phase conversion of Al2O3 resulted in thickness variations of the TGO and Al-depleted zone during high-temperature exposure

Synergistic Effects of Multiple Environmental Factors on Degradation of Hydrogenated Nitrile Rubber Seals

Degradation tests of hydrogenated nitrile rubber seals, often used as sealing components in hydraulic systems, were conducted under the free and compression state in air and hydraulic oil at three elevated temperatures for several days to investigate the synergistic effects among three factors. The crosslinking and chain scission reactions both occurred simultaneously at higher temperature during the degradation process, and crosslinking predominated for most cases. Additionally, the synergistic effect between compression stress and hydraulic oil further slowed the degradation rate by limiting oxygen access. However, the higher temperature and hydraulic oil both promoted the formation of oxidation products, whereas the compression stress restrained the formation of amide groups. The fracture morphology results show that the defects gradually formed on the fracture surface, especially for the uncompressed specimens. The increase of the compression set aged in air was more than that in hydraulic oil, implying the more serious degradation. Moreover, rubber seals under the synthetic effect of three environmental factors presented the minimum degradation level. The degradation of the compressed and uncompressed specimens exposed to hydraulic oil is more serious than that of specimens exposed to air