Customization: Ideal Varieties, Product Uniqueness and Price Competition
X. H. Wang
customization, product di fferentiation, product uniqueness, price competition. | customization, product differentiation, product uniqueness, price competition
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...