Customization: Ideal Varieties, Product Uniqueness and Price Competition

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Oksana Loginova; X. Henry Wang;
  • Journal: Economics Bulletin,volume 29,issue 4,pages2,573-2,581
  • Subject: customization, product di fferentiation, product uniqueness, price competition. | customization, product differentiation, product uniqueness, price competition
    • jel: jel:D43 | jel:D4 | jel:L1 | jel:L13 | jel:C72

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 cu... View more
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