Myatt, David P.; Johnson, Justin P. - Department of Economics, Oxford University - 2004
the dispersion of consumers` valuations, which lead to rotations of the demand curve. In a wide variety of settings …, profits are a U-shaped function of dispersion. A high level of dispersion is complemented by a niche posture, and low … dispersion is complemented by a mass-market posture. We investigate numerous applications of our framework, including product …