Locating inside the Salop circle: Demand rotations in a micro-founded model
Heski Bar-Isaac (),
Guillermo Caruana and
Vicente Cuñat ()
MPRA Paper from University Library of Munich, Germany
We present a micro-founded model of design, that provides a framework in which design leads to demand rotations. We show simple sufficient conditions that determine when design should be extreme (fully standardized or fully tailored) or rather be only partially tailored.
Keywords: Demand Rotations; Salop Circle; Product Design (search for similar items in EconPapers)
JEL-codes: D21 L00 (search for similar items in EconPapers)
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https://mpra.ub.uni-muenchen.de/46468/1/MPRA_paper_46468.pdf original version (application/pdf)
Working Paper: Locating inside the Salop circle: demand rotations in a micro-founded model (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46468
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