Fat products

被引:21
作者
Alexandrov, Alexei [1 ]
机构
[1] Univ Rochester, Simon Sch Business, Rochester, NY 14627 USA
关键词
D O I
10.1111/j.1530-9134.2008.00171.x
中图分类号
F [经济];
学科分类号
02 ;
摘要
The economics literature generally considers products as points in some characteristics space. With more products being flexible or self-customizable to some degree, it makes sense to model products with positive measure. I develop a model of firms which can offer interval-long "fat" products in the spatial model of differentiation. Contrary to the standard results, profits of the firms can decrease with increased differentiation in the market-there is a standard effect of lowering the incentive to cut prices, but there is also an incentive to provide more content, resulting in higher costs and possibly overall losses.
引用
收藏
页码:67 / 95
页数:29
相关论文
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[21]  
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