Customization: Ideal Varieties, Product Uniqueness and Price Competition

Oksana Loginova () and X. Wang ()
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Oksana Loginova: Department of Economics, University of Missouri, https://economics.missouri.edu/people/loginova

No 904, Working Papers from Department of Economics, University of Missouri

Abstract: We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.

Keywords: customization; product di fferentiation; product uniqueness; price competition. (search for similar items in EconPapers)
JEL-codes: C72 D43 L13 (search for similar items in EconPapers)
Pages: 9
Date: 2009-01-31
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Citations: View citations in EconPapers (1)

Published in Economics Bulletin 2009

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Journal Article: Customization: Ideal Varieties, Product Uniqueness and Price Competition (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:0904

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