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Measuring product diversity

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  • Gans, Joshua S.
  • Hill, Robert J.

Abstract

The diversity of a set can be defined as a function of the bilateral distances between the elements of the set. We show how the bilateral distances between products can be presented by parameters in a utility function.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 55 (1997)
Issue (Month): 1 (August)
Pages: 145-150

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Handle: RePEc:eee:ecolet:v:55:y:1997:i:1:p:145-150

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Web page: http://www.elsevier.com/locate/ecolet

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References

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  1. Sutton, John, 1996. "Technology and market structure," European Economic Review, Elsevier, vol. 40(3-5), pages 511-530, April.
  2. Caplin, Andrew & Nalebuff, Barry, 1991. "Aggregation and Imperfect Competition: On the Existence of Equilibrium," Econometrica, Econometric Society, vol. 59(1), pages 25-59, January.
  3. Weitzman, Martin L, 1992. "On Diversity," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 363-405, May.
  4. Goldberg, Pinelopi Koujianou, 1995. "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry," Econometrica, Econometric Society, vol. 63(4), pages 891-951, July.
  5. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
  6. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  7. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  8. ANDERSON, P. & de PALMA, André & THISSE, Jacques-François, . "The CES and the logit.Two related models of heterogeneity," CORE Discussion Papers RP -785, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, . "Demand for differentiated products, discrete choice models, and the characteristics approach," CORE Discussion Papers RP -824, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Weitzman, Martin L, 1994. "Monopolistic Competition with Endogenous Specialization," Review of Economic Studies, Wiley Blackwell, vol. 61(1), pages 45-56, January.
  11. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
  12. Weitzman, M.L., 1992. "Diversity Functions," Harvard Institute of Economic Research Working Papers 1610, Harvard - Institute of Economic Research.
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Cited by:
  1. Bernhofen, Daniel M., 2001. "Measuring diversity in product space: the missing axiom," Economics Letters, Elsevier, vol. 70(1), pages 69-72, January.

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