The Max-Min Principle of Product Differentiation: An Experimental Analysis

Theoretical models of multidimensional product differentiation predict that in duopoly firms differentiate maximally along one dimension and minimally along the other dimensions. We experimentally reproduce a market in which firms can differentiate their products along two horizontal dimensions. The main result is that subjects do not differentiate their products and locate near the center consumers' distribution.

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Year of publication:	2002-12-09
Authors:	Mangani, Andrea ; Patelli, Paolo
Institutions:	Laboratory of Economics and Management (LEM), Scuola Superiore Sant'Anna

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Extent:	application/pdf
Series:	LEM Papers Series.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005650056