EconPapers    
Economics at your fingertips  
 

The Logit as a Model of Product Differentiation

Simon Anderson and André de Palma ()

Oxford Economic Papers, 1992, vol. 44, issue 1, 51-67

Abstract: The logit discrete choice model is argued to be flexible, tractable, and intuitively sound as a demand model of product differentiation under oligopoly. The free entry equilibrium product range is greater than or less than the social optimum, depending on cost and demand conditions and the degree of heterogeneity of consumer tastes. If the market provides "too many" products, then the difference between equilibrium and first-best optimal product diversity is negligible. However, when the market solution yields "too few" products, the market may seriously underprovide diversity. Copyright 1992 by Royal Economic Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (48)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819920 ... 0.CO%3B2-A&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:44:y:1992:i:1:p:51-67

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2025-03-22
Handle: RePEc:oup:oxecpp:v:44:y:1992:i:1:p:51-67