Locating inside the Salop circle: Demand rotations in a micro-founded model
AbstractWe present a micro-founded model of design, that provides a framework in which design leads to demand rotations. We show simple sufficient conditions that determine when design should be extreme (fully standardized or fully tailored) or rather be only partially tailored.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46468.
Date of creation: 22 Apr 2013
Date of revision:
Demand Rotations; Salop Circle; Product Design;
Other versions of this item:
- Heski Bar-Isaac & Guillermo Caruana & Vicente Cuñat, 2011. "Locating inside the Salop circle: demand rotations in a micro-founded model," LSE Research Online Documents on Economics 43163, London School of Economics and Political Science, LSE Library.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L00 - Industrial Organization - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
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