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Understanding product life cycles plays an important role in the innovation arms race, helping to define firm growth and market competition.
Products experience a substantial decline in sales after an initial period of growth, a trend that is consistent across various industries and product types.
“By examining the life cycle of a wide cross-section of products, we can see the role product performance plays in shaping firm and economic growth,” said Munseob Lee, assistant professor of economics at the University of California San Diego School of Global Policy and Strategy.
Lee and his fellow researchers, Yale University’s David Argente and Northwestern University’s Sara Moreira, had a unique approach to their study. Rather than looking at durable goods like personal computers, they used a retail scanner to examine a broad…
