|
| |
| 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 |
|
