Multivariate diffusion modeling

This monograph covers the phenomenon of multi-product/technology diffusion in markets with complex demand interdependencies. The author gives an extensive survey of existing multivariate diffusion models. After discussing their deficiencies a list of requirements for an ideal aggregate-level model is defined. Based on this, the author presents a new generalized model framework which subsumes most established models. The author illustrates the model’s functionality and discusses important special cases. Because of their relevance for the model an introduction to the theory of multivariate dependence concepts is given. In the second part three empirical studies are presented in which the new model is compared with existing models in terms of fit and forecasting capabilities. The results reflect both appropriateness and robustness of the suggested approach.