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On the Definition of Differentiated Products in the Real World

In: Institutions, Equilibria and Efficiency

Author

Listed:
  • Beth Allen

    (University of Minnesota)

Abstract

Summary This paper proposes an abstract model of commodity differentiation that incorporates manufacturing imprecision and dimensioning and tolerancing standards. The potential consistency of such a model based on engineering consideration is analyzed. For a large pure exchange economy, competitive equilibria exist and are Pareto optimal. Production issues such as the derived demand for intermediate products, continuity of cost functions, and product selection and technology issues such as mass customization, agile manufacturing, and manufacturability are discussed.

Suggested Citation

  • Beth Allen, 2006. "On the Definition of Differentiated Products in the Real World," Studies in Economic Theory, in: Christian Schultz & Karl Vind (ed.), Institutions, Equilibria and Efficiency, chapter 2, pages 9-26, Springer.
    • Handle: RePEc:spr:steccp:978-3-540-28161-0_2
    DOI: 10.1007/3-540-28161-4_2
    as

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