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The medium-term effects of unavailability

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  • Avi Goldfarb

Abstract

This paper develops a new method of identifying why current product unavailability has an effect on future brand choices. If the impact is solely due to changing preferences, then all competitors of the unavailable item gain proportionally to their share; if, however, there is lock-in, then the competitor that is chosen instead of the unavailable product should gain disproportionately more. Denial of service attacks at Yahoo, CNN, and Amazon show that unavailability has a medium-term impact. Lock-in drives 51% of the effect on Yahoo, but it dissipates much more quickly than the effect of changing preferences. Copyright Springer Science + Business Media, LLC 2006

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  • Avi Goldfarb, 2006. "The medium-term effects of unavailability," Quantitative Marketing and Economics (QME), Springer, vol. 4(2), pages 143-171, June.
    • Handle: RePEc:kap:qmktec:v:4:y:2006:i:2:p:143-171
    DOI: 10.1007/s11129-006-8128-8
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    References listed on IDEAS

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    Cited by:

    1. Bucklin, Randolph E. & Sismeiro, Catarina, 2009. "Click Here for Internet Insight: Advances in Clickstream Data Analysis in Marketing," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 35-48.
    2. Nikola Milicevic & Aleksandar Grubor, 2015. "The effect of backroom size on retail product availability – operational and technological solutions," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 661-661, May.
    3. Catarina Sismeiro & Ammara Mahmood, 2018. "Competitive vs. Complementary Effects in Online Social Networks and News Consumption: A Natural Experiment," Management Science, INFORMS, vol. 64(11), pages 5014-5037, November.
    4. Aleksandar Grubor & Nikola Milićević & Nenad Djokic, 2016. "The Effect of Inventory Level on Product Availability and Sale," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(2), pages 221-233.
    5. Hyung Sup (Zack) Bhan & Eric T. Anderson, 2023. "Multiyear Impact of Backorder Delays: A Quasi-Experimental Approach," Marketing Science, INFORMS, vol. 42(2), pages 314-335, March.
    6. Cleeren, K. & Dekimpe, M.G. & Helsen, K., 2008. "Weathering product-harm crises," Other publications TiSEM 283b51f8-dd35-4a10-930a-8, Tilburg University, School of Economics and Management.
    7. Guy Aridor, 2022. "Measuring Substitution Patterns in the Attention Economy: An Experimental Approach," CESifo Working Paper Series 10190, CESifo.
    8. K. Sudhir & Nathan Yang, 2014. "Exploiting the Choice-Consumption Mismatch: A New Approach to Disentangle State Dependence and Heterogeneity," Cowles Foundation Discussion Papers 1941, Cowles Foundation for Research in Economics, Yale University.

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