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The economic analysis of product diversity

Product diversity is a long-debated issue in economics. We remind that mainly two questions have been given answers : (a) To which extent does the market provide diversity ? (b) Why should this diversity be promoted ? The first one stands out as the core of most articles on product diversity, whereas the second one is more evoked than really deepened. However, the economic analysis of product diversity stands out as a paradox. Actually, the definition of diversity itself has been somewhat forgotten. We try to give ways to overcome this absence so that product diversity can eventually be concretely assessed.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number r05083.

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Length: 20 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:mse:wpsorb:r05083
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  1. Deneckere, Raymond J & Rothschild, Michael, 1992. "Monopolistic Competition and Preference Diversity," Review of Economic Studies, Wiley Blackwell, vol. 59(2), pages 361-73, April.
  2. Anderson, Simon P & de Palma, Andre & Thisse, Jacques-Francois, 1989. "Demand for Differentiated Products, Discrete Choice Models, and the Characteristics Approach," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 21-35, January.
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  7. Greenberg, Edward & Barnett, Harold J, 1971. "TV Program Diversity-New Evidence and Old Theories," American Economic Review, American Economic Association, vol. 61(2), pages 89-93, May.
  8. Baxter, William F, 1974. "Regulation and Diversity in Communications Media," American Economic Review, American Economic Association, vol. 64(2), pages 392-99, May.
  9. Suen, Wing, 1991. "The Value of Product Diversity," Oxford Economic Papers, Oxford University Press, vol. 43(2), pages 217-23, April.
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  12. Levin, Harvey J, 1971. "Program Duplication, Diversity, and Effectve Viewer Choices: Some Empirical Findings," American Economic Review, American Economic Association, vol. 61(2), pages 81-88, May.
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  17. Lancaster, Kelvin, 1975. "Socially Optimal Product Differentiation," American Economic Review, American Economic Association, vol. 65(4), pages 567-85, September.
  18. GABSZEWICZ, Jean J., . "Blue and red cars, or blue cars only? A note on product variety," CORE Discussion Papers RP 524, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  19. Simon P. Anderson & Andre de Palma & Jacques-Francois Thisse, 1987. "Demand for Differentiated Products," Discussion Papers 726, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  20. Vanessa Oltra & Patrick Llerena, 2002. "Diversity of innovative strategy as a source of technological performance," Post-Print hal-00162913, HAL.
  21. 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.
  22. Donsimoni, Marie-Paule & Geroski, Paul & Jacquemin, Alexis, 1984. "Concentration Indices and Market Power: Two Views," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 419-34, June.
  23. Weitzman, Martin L, 1994. "Monopolistic Competition with Endogenous Specialization," Review of Economic Studies, Wiley Blackwell, vol. 61(1), pages 45-56, January.
  24. Patrick Cohendet & Arndt Sorge & Patrick Llerena, 1992. "Technological diversity and cohérence in Europe : an analytical overview," Revue d'Économie Industrielle, Programme National Persée, vol. 59(1), pages 9-26.
  25. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
  26. Hans van Kranenburg & John Hagedoorn & Jacqueline Pennings, 2004. "Measurement of International and Product Diversification in the Publishing Industry," Journal of Media Economics, Taylor & Francis Journals, vol. 17(2), pages 87-104.
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