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Oksana Loginova and X. Henry Wang
''Customization: Ideal Varieties, Product Uniqueness and Price Competition''
( 2009, Vol. 29 No.4 )
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 differentiation, product uniqueness, price competition
JEL: L1 - Oligopoly and Other Imperfect Markets
D4 - Market Structure and Pricing: General
Manuscript Received : Sep 02 2009 Manuscript Accepted : Oct 14 2009

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