Customization: Ideal Varieties, Product Uniqueness and Price Competition

We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.

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Year of publication:	2009-01-31
Authors:	Loginova, Oksana ; Wang, X. Henry
Institutions:	Economics Department, University of Missouri
Subject:	customization \| product differentiation \| product uniqueness \| price competition

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	published in Economics Bulletin 2009 Number 0904 9 pages long
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; C72 - Noncooperative Games
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008552118