What is a Beverage Worth? Arbitrage Pricing and the Value of New Products: An Attribute-Space Approach

We empirically estimate the valuation of new carbonated soft drink products within a model of market value maximization. We show that equity value is an important consideration in the firm decision to differentiate or imitate in new product introductions. Our results indicate that differentiation is a marginally better strategy for new product introductions as opposed to imitation of existing products. This finding is quite logical given the already high levels of imitative competition existing in the carbonated soft drink category.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/6257
Total Pages:
34
Series Statement:
Selected Paper
469507




 Record created 2017-04-01, last modified 2017-04-26

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