Endogenous Product Design: A Linear Demand Approach

Afonso Rodrigues

Papers from arXiv.org

Abstract: This paper introduces a novel characteristics-based specification for linear demand to investigate endogenous product design. Characteristics are allowed to affect both consumers' product valuations and to what extent these compete. I demonstrate how such a specification can help linear demand deliver fresh insights in how firms may optimally design existing goods, as well as predict demand for new products. The framework is novel in its broad applicability to settings with any finite number of goods, firms, and product characteristics, with both vertical and horizontal differentiation across different market structures, and under asymmetry.

Date: 2026-02, Revised 2026-04
New Economics Papers: this item is included in nep-com, nep-des, nep-gth, nep-ind and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2602.02833 Latest version (application/pdf)

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:arx:papers:2602.02833

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().