DYNAMIC MODEL OF NEW PRODUCT LAUNCH IMPACT ON STOCK MARKET PARTICIPANTS

Veronika Novotna and Stanislav Skapa

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2018, vol. 12, issue 1, 396-405

Abstract: The instant access to global information and just as fast responses to the information result in very fast development of communication possibilities and information spreading. The paper addresses spreading information about a new product in a way similar to the principle of virus spreading in epidemiology. We will introduce a mathematical model of signal spreading about a new product in the stock market environment, considering the time delay and inspired by the virus dynamics theory. The mathematical model has been set up from the point of view of the investors´ behaviour and analysed in terms of the time delay influence. The situations demonstrated confirm that the signal of the newly introduced product will have an effect on the stock market behaviour over a certain period but in the long-term perspective its influence disappears. The model solvability is analysed and the solution is demonstrated on a particular example.

Keywords: dynamic modelling; investment; new product launch; time delay; virus dynamics. (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:12:y:2018:i:1:p:396-405

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