Diffusion of Products with Limited Supply and Known Expiration Date

In this paper, we provide a model for diffusion of products, which are available in limited quantity until a known expiration date, after which the unsold products have no value. We consider the case of a performing arts company. The model development is built on the foundation of classical product diffusion model by Bass (1969) and the psychological effect known as the scarcity principle (Cialdini, 1985). Our empirical analysis results show that the proposed model can provide significant improvement in prediction of the products characterized by the scarcity effect.     

Real Exchange Rate and Real Interest Rate Differential: A Cointegration Approach with Structural Shifts

Journal of Quantitative Economics - Long term determinants of the movements in exchange rate have been an active interest area for both theoretical and empirical research. In this paper, we...