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Locating inside the Salop circle: demand rotations in a micro-founded model

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We present a micro-founded model of design that leads to simple demand rotations. We present simple sufficient conditions that determine when design should be extreme (fully standardized or fully tailored) or rather take intermediate positions.

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en

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application/pdf

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http://eprints.lse.ac.uk/43163/1/Locating%20inside%20the%20Salop%20circle%20demand%20rotations%20in%20a%20micro-founded%20model%20%28LSE%20RO%29.pdf

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