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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- Hendel, Igal & de Figueiredo, John Neiva, 1997. "Product differentiation and endogenous disutility," International Journal of Industrial Organization, Elsevier, vol. 16(1), pages 63-79, November.
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Virginia Economics Online Papers
362, University of Virginia, Department of Economics.
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