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Persistent link: https://www.econbiz.de/10000913117
The literature on mass customization generally focuses on the tradeoff between higher revenues from better matching customer preferences with product specifications, and higher costs of offering a broader - possibly fully customized - product line. Less well-understood is the tradeoff between...
Persistent link: https://www.econbiz.de/10013133023
We analyse how strategic competition between a green firm and a brown competitor develops when their products are differentiated along two dimensions: hedonic quality and environmental quality. The former dimension refers to the pure (intrinsic) performance of the good, whereas the latter...
Persistent link: https://www.econbiz.de/10013014999
This paper contributes to the debate on the implication of market integration in fostering innovations. In contrast to the literature, we use a model of vertical product differentiation and formalize the speed of response to market integration as a first mover advantage in R&D. If the domestic...
Persistent link: https://www.econbiz.de/10012835188
This paper proposes a model of the ridesourcing market in presence of traffic congestion and with the provision of both solo and pooling services. Our analysis of the first-best solution shows that, under a highly congested scenario, the ridesourcing platform may enjoy non-negative profits....
Persistent link: https://www.econbiz.de/10012842394
Large sunk costs of development, negligible costs of reproduction and distribution and substantial economies of scale make information goods distinct from physical goods. Consequently,how to take advantage of the specific characteristics of information goods is an important managerial problem....
Persistent link: https://www.econbiz.de/10012733396
We study a model in which a monopoly firm designs the quality profile of its inventory and then dynamically updates its pricing menu for a finite selling horizon to maximize revenue. In a counterfactual scenario, a social planner goes through the same process to maximize total welfare. We show...
Persistent link: https://www.econbiz.de/10012935310
We consider the price and welfare effects of competition in targeted product design, in the context of the Salop circle model. Changes in product design lead to demand rotations that set the stage for our analysis. With an exogenous number of firms, we show that the degree of targeted product...
Persistent link: https://www.econbiz.de/10012937910
Persistent link: https://www.econbiz.de/10012818169
We consider a joint assortment, inventory, and pricing problem of a retailer selling multiple vertically differentiated products of a single category. Consumers are heterogeneous in their willingness to pay for product quality. But the retailer only knows the distribution of consumer...
Persistent link: https://www.econbiz.de/10012827017