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.

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Year of publication:	2013-04-22
Authors:	Bar-Isaac, Heski ; Caruana, Guillermo ; Cuñat, Vicente
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Demand Rotations \| Salop Circle \| Product Design

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D21 - Firm Behavior ; L00 - Industrial Organization. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011111146