Modeling cross-price effects on inter-category dynamics: The case of three computing platforms

The model is empirically tested based on the sales and price data of three computing platforms-mainframe, mini, and micro computers, which dynamically interact within the broader “computing” market. The results show that the sales of a given category of computing platform is significantly affected by the price of the category itself and by that of the related categories as well. The model is validated by comparing it with its alternative model specifications of similar purpose based on several established model comparison criteria. Managerial implications, contributions, and limitations of the model are also discussed.