ON THE LONG‐RUN EFFECTS OF FASHION

Luis Araujo () and Raoul Minetti

Economic Inquiry, 2007, vol. 45, issue 4, 756-769

Abstract: We investigate the long‐run dynamic interaction between fashion (brand loyalty) and industry structure. We analyze how this interaction affects the importance of fashion in the market for a product in the different stages of its life and characterize conditions under which fashion loses or preserves its relevance over time. The model can explain why some products survive fashion changes. (JEL D21, L0)

Date: 2007
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