A note on estimating Bass model parameters

TL;DR

This paper introduces a straightforward method for estimating the parameters of the Bass model, which predicts new product adoption over time, and proves the convergence rate of the estimation process.

Contribution

It provides a simple estimation approach for the Bass model parameters along with a proof of the convergence rate, enhancing practical application and theoretical understanding.

Findings

Proposed a new simple estimation method for Bass model parameters.

Proved the convergence rate of the estimation process.

Facilitates easier and more reliable parameter estimation in practice.

Abstract

Bass (1969) proposed a model (the Bass model) for the timing of adoptions of a new product, where the adoption rate increases with the number of past adoptions. This model has been widely used in marketing and operations management literature to model new product demand over time. In this note, we provide a simple approach to estimate the Bass model parameters and prove the convergence rate.