A DIFFUSION THEORY MODEL OF ADOPTION AND SUBSTITUTION FOR SUCCESSIVE GENERATIONS OF HIGH-TECHNOLOGY PRODUCTS.

This study deals with the dynamic sales behavior of successive generations of high-technology products. New technologies diffuse through a population of potential buyers over time. Therefore, diffusion theory models are related to this demand growth. Furthermore, successive generations of a technology compete with earlier ones, and that behavior is the subject of models of technological substitution. Building upon the Bass (1969) diffusion model, we develop a model which encompasses both diffusion and substitution. We demonstrate the forecasting properties of the model by estimating parameters over part of the data and projecting shipments for later periods. [ABSTRACT FROM AUTHOR]