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Information Gathering Externalities in Product Markets

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  • Heski Bar-Isaac
  • Guillermo Caruana
  • Vicente Cunat

Abstract

We consider the trade-offs in the choice between depth (a narrow high quality position) and breadth (a wide low quality range). In particular, the extent of depth or breadth in a market can be non-monotonic in the strength of competition.

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File URL: http://w4.stern.nyu.edu/emplibrary/7-19.pdf
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Bibliographic Info

Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 07-19.

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Date of creation: 2007
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Handle: RePEc:ste:nystbu:07-19

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Postal: New York University, Leonard N. Stern School of Business, Department of Economics, 44 West 4th Street, New York, NY 10012-1126
Phone: (212) 998-0860
Fax: (212) 995-4218
Web page: http://w4.stern.nyu.edu/economics/
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  1. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
  2. Manez, J.A. & Waterson, M., 2001. "Multiproduct Firms and Product Differentiation: a Survey," The Warwick Economics Research Paper Series (TWERPS) 594, University of Warwick, Department of Economics.
  3. Neven, D. & Thisse, J-F., 1989. "On Quality And Variety Competition," CORE Discussion Papers 1989020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Luis Garicano & Thomas N. Hubbard, 2003. "Firms' Boundaries and the Division of Labor: Empirical Strategies," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 495-502, 04/05.
  5. Alexei Alexandrov, 2006. "Fat Products," Discussion Papers 1435, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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