Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive.
The author suggests a new model of demand for variety that explains why competing firms may choose very similar product lines: if firms offer different product ranges, some consumers use multiple suppliers to increase variety and, since these consumers' purchases will be sensitive to the differ...
| Автор: | |
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| Формат: | Journal article |
| Мова: | English |
| Опубліковано: |
1992
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| _version_ | 1826273496446009344 |
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| author | Klemperer, P |
| author_facet | Klemperer, P |
| author_sort | Klemperer, P |
| collection | OXFORD |
| description | The author suggests a new model of demand for variety that explains why competing firms may choose very similar product lines: if firms offer different product ranges, some consumers use multiple suppliers to increase variety and, since these consumers' purchases will be sensitive to the difference in firms' prices, the market may be fairly competitive. If, instead, firms offer identical product ranges, each consumer purchases from one firm only because of costs of using additional suppliers, so the market may be less competitive and equilibrium prices higher. This contrasts with the standard intuition that firms minimize competition by differentiating their products. |
| first_indexed | 2024-03-06T22:29:04Z |
| format | Journal article |
| id | oxford-uuid:57ac43ad-d904-4866-be9a-4853bc744e84 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:29:04Z |
| publishDate | 1992 |
| record_format | dspace |
| spelling | oxford-uuid:57ac43ad-d904-4866-be9a-4853bc744e842022-03-26T16:58:09ZEquilibrium Product Lines: Competing Head-to-Head May Be Less Competitive.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:57ac43ad-d904-4866-be9a-4853bc744e84EnglishDepartment of Economics - ePrints1992Klemperer, PThe author suggests a new model of demand for variety that explains why competing firms may choose very similar product lines: if firms offer different product ranges, some consumers use multiple suppliers to increase variety and, since these consumers' purchases will be sensitive to the difference in firms' prices, the market may be fairly competitive. If, instead, firms offer identical product ranges, each consumer purchases from one firm only because of costs of using additional suppliers, so the market may be less competitive and equilibrium prices higher. This contrasts with the standard intuition that firms minimize competition by differentiating their products. |
| spellingShingle | Klemperer, P Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title | Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title_full | Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title_fullStr | Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title_full_unstemmed | Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title_short | Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive. |
| title_sort | equilibrium product lines competing head to head may be less competitive |
| work_keys_str_mv | AT klempererp equilibriumproductlinescompetingheadtoheadmaybelesscompetitive |