Locating inside the Salop circle: demand rotations in a micro-founded model
Heski Bar-Isaac (),
Guillermo Caruana and
Vicente Cuñat ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
We present a micro-founded model of design that leads to simple demand rotations. We present simple sufficient conditions that determine when design should be extreme (fully standardized or fully tailored) or rather take intermediate positions.
JEL-codes: F3 G3 (search for similar items in EconPapers)
Pages: 9 pages
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Working Paper: Locating inside the Salop circle: Demand rotations in a micro-founded model (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:43163
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