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The Max-Min-Min Principle of product Differentiation

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Author Info
Ansari, A.
Economides, N.
Steckel, J.

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Abstract

We analyze two and three-dimensional variants of Hostelling's model of differentiated products. In our setup, consumers can place different importance on each product attribute; this is measured by a weight in the disutility of distance in each dimension.

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Publisher Info
Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 96-10.

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Length: 37 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:ste:nystbu:96-10

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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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Keywords: PRODUCTION; CONSUMPTION; FIRMS;

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Find related papers by JEL classification:
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Green, Paul E & Srinivasan, V, 1978. " Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 5(2), pages 103-23, Se.
  2. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring. [Downloadable!] (restricted)
  3. Economides, Nicholas, 1989. "Symmetric equilibrium existence and optimality in differentiated product markets," Journal of Economic Theory, Elsevier, vol. 47(1), pages 178-194, February. [Downloadable!] (restricted)
  4. Caplin, Andrew & Nalebuff, Barry, 1991. "Aggregation and Imperfect Competition: On the Existence of Equilibrium," Econometrica, Econometric Society, vol. 59(1), pages 25-59, January. [Downloadable!] (restricted)
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  5. Tabuchi, Takatoshi, 1994. "Two-stage two-dimensional spatial competition between two firms," Regional Science and Urban Economics, Elsevier, vol. 24(2), pages 207-227, April. [Downloadable!] (restricted)
  6. Neven, Damien, 1985. "Two Stage (Perfect) Equilibrium in Hotelling's Model," Journal of Industrial Economics, Blackwell Publishing, vol. 33(3), pages 317-25, March. [Downloadable!] (restricted)
  7. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September. [Downloadable!] (restricted)
  8. Economides, Nicholas, 1986. "Minimal and maximal product differentiation in Hotelling's duopoly," Economics Letters, Elsevier, vol. 21(1), pages 67-71. [Downloadable!] (restricted)
  9. Economides, Nicholas, 1984. "The principle of minimum differentiation revisited," European Economic Review, Elsevier, vol. 24(3), pages 345-368, April. [Downloadable!] (restricted)
  10. Economides, Nicholas, 1993. "Quality variations in the circular model of variety-differentiated products," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 235-257, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olivier Coibion & Liran Einav & Juan Carlos Hallak, 2006. "Equilibrium Demand Elasticities across Quality Segments," Working Papers 550, Research Seminar in International Economics, University of Michigan. [Downloadable!]
    Other versions:
  2. Duarte Brito & Pedro Pereira, 2007. "Product Differentiation when Competing with the Suppliers of Bottleneck Inputs," Working Papers 25, Portuguese Competition Authority. [Downloadable!]
    Other versions:
  3. Maarten C.W. Janssen & Vladimir A. Karamychev & Peran van Reeven, 2003. "Multi-Store Competition: Market Segmentation or Interlacing?," Tinbergen Institute Discussion Papers 03-033/1, Tinbergen Institute. [Downloadable!]
    Other versions:
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