Locating inside the Salop circle: Demand rotations in a micro-founded model
We 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.
|Date of creation:||22 Apr 2013|
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- von Ungern-Sternberg, Thomas, 1988. "Monopolistic Competition and General Purpose Products," Review of Economic Studies, Wiley Blackwell, vol. 55(2), pages 231-46, April.
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- Tirole, Jean & Weyl, Glen, 2010. "Materialistic Genius and Market Power: Uncovering the best innovations," IDEI Working Papers 629, Institut d'Économie Industrielle (IDEI), Toulouse.
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