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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

Abstract: 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
Date: 2011-12
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Related works:
Working Paper: Locating inside the Salop circle: Demand rotations in a micro-founded model (2013) Downloads
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