Download or read book Product Differentiation and Demand Elasticity written by Richard L. Carson and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that product differentiation is compatible with perfect competition under free entry and exit and small firm size relative to size of market. Despite Chamberlin's view, monopolistic competitors are price takers, even though each firm's product has no perfect substitute. There is a difference between perfect competition with product homogeneity and perfect competition with differentiated products, however. Advertising can pay off with differentiated products because products have separate identities--and price depends on quality--even though firms are price takers for any given quality. A differentiated oligopoly may resemble monopolistic competition a la Chamberlin in some ways.
Download or read book The Economic Theory of Product Differentiation written by John Beath and published by Cambridge University Press. This book was released on 1991-02-22 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.
Download or read book Product Variety Price Elasticity of Demand and Fixed Cost in Spatial Models written by Yiquan Gu and published by . This book was released on 2009 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of Product Differentiation written by Jacques François Thisse and published by . This book was released on 1994 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Product Differentiation and Foreign Trade in CGE Models of small Economies written by and published by World Bank Publications. This book was released on with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Discrete Choice Theory of Product Differentiation written by Simon P. Anderson and published by MIT Press. This book was released on 1992 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The discrete choice approach provides an ideal framework for describing the demands for differentiated products and can be used for studying most product differentiation models in the literature. By introducing extra dimensions of product heterogeneity, the framework also provides richer models of firm location and product selection."--BOOK JACKET.
Download or read book The Effects of Mergers in Differentiated Products Industries written by Gregory Werden and published by . This book was released on 1993 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mixed Duopoly Product Differentiation and Competition written by Minoru Kitahara and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between the equilibrium price and the degree of product differentiation in a mixed duopoly in which a welfare-maximizing public enterprise competes against a profit-maximizing private firm. Existing works on private economy show that increased product differentiation mitigates price competition. We find that, in a mixed economy, increased product differentiation can accelerate competition when the demand is elastic. The private firm chooses to locate itself too close to the public firm (and thus makes the resulting degree of product differentiation too low) for social welfare, which never appears in the private economy.
Download or read book Microeconomic Theory written by Michael Eugene Wetzstein and published by Routledge. This book was released on 2013 with total page 1096 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book introduces the main concepts of microeconomics to students who have undergone at least one elementary calculus course. It fully integrates graphical and mathematical concepts and offers analytical examples demonstrating numerical solutions. The book has a strong theoretical basis but shows how microeconomics can be brought to bear on the real world. New Features for this edition include: An incorporation of the theory of stock externalities associated with greenhouse gases ; Development of the section on insurance with particular reference to the new US healthcare program ; greater integration of game theoretic concepts throughout the book. The book's style is accessible, but also rigorous. Mathematical examples are provided throughout the book, in particular for key concepts and the result is a balanced approach in terms of prose, graphics, and mathematics.
Download or read book Estimating Substitution Patterns and Demand Curvature in Discrete choice Models of Product Differentiation written by Cameron Birchall and published by . This book was released on 2022 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: We extend BLP's aggregate discrete-choice model of product differentiation to create more flexibility in the price functional form. We apply a Box-Cox specification, which relaxes the typical unit demand assumption and creates flexibility on demand curvature. The model provides a unifying framework for mixed logit and mixed CES models. Our illustrative application to the ready-to-eat cereals market shows that the cross-sectional relation between price elasticities and average prices per product is more in line with descriptive elasticity patterns. Furthermore, it suggests lower cross-price elasticities between similarly priced products than in more restrictive specifications.
Download or read book Demand Elasticities in Antitrust Analysis written by Gregory Werden and published by . This book was released on 1996 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inverse Product Differentiation Logit Model written by Jinghai Huo and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the seminal work by Berry-Levinsohn-Pakes (BLP), random coefficient logit (RCL) has become the workhorse model to estimate demand elasticities in markets with differentiated products using aggregated sales data. While the ability to represent flexible substitution patterns makes RCL a preferable model, its estimation is computationally challenging due to the numerical inversion of the demand function. Recently proposed inverse product differentiation logit (IPDL) claims to address these computational challenges by directly specifying the inverse demand function and representing flexible substitution patterns through non-hierarchical product segmentation in multiple dimensions. Unlike the two-stage simulation-based estimation of RCL, IPDL requires estimating a traditional linear instrumental variable regression model. In theory, IPDL appears to be an attractive alternative to RCL, but its potential has not yet been explored in empirical studies. We present the first application of IPDL in understanding the demand for passenger cars in China using province-level sales data. Our results indicate that demand elasticity estimates of IPDL and RCL are not statistically different, i.e., IPDL could capture substitution patterns similar to RCL. The estimation of IPDL takes less than a second on a regular computer (i.e., over 500 times faster than RCL). Overall, the flexibility and computational efficiency of IPDL could make it a workhorse model for demand estimation using market-level aggregated sales data.
Download or read book Product Differentiation and Price Competition Between a Safe and a Risky Seller written by Winand Emons and published by . This book was released on 1998 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Product Differentiation and Multiproduct Strategies written by Marco Di Cintio and published by . This book was released on 2006 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the price-setting behavior of multiproduct firms in a differentiated product market. The structure considered is one where large companies offer either a set of close substitutes (market segmentation) or a set of distant substitutes (market interlacing). The modelling strategy of the paper is to allow for two different elasticities of substitution: the intra-company elasticity of substitution and the inter-company elasticity of substitution. The key feature of the model is the possibility for multiproduct companies to choose their optimal internal organizational structure, according to the relative size of these two parameters. In order to maximize profits, each company may either set prices centrally, or alternatively it may assign an independent product manager to run each division. In other words, product managers of the same company may behave either independently or cooperatively. While the model does not consider either the proliferation or the product-line selection decisions, it deals with multiproduct frms price decisions under oligopolistic competition making use of conjectural variations. Its main purpose has been to provide a micro-founded answer about the question of whether and when a system of independent product managers (decentralized decisions) is better than a mechanism with a centralized general direction. Coordination is always profitable under market segmentation; while under market interlacing, the strategy of relying on independent product managers is profitable when the standard monopolistic competition arises; it may also be profitable with oligopolistic (Bertrand) competition under some assumptions.
Download or read book Introduction to Microeconomics written by Gilad James, PhD and published by Gilad James Mystery School. This book was released on with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction to Microeconomics is a course that familiarizes students with basic economic concepts and theories that aim to analyze individual decision-making behavior and how it affects the overall market demand and supply. The course covers topics such as demand and supply, market equilibrium, consumer and producer behavior, market structures, and government interventions. By learning the principles of microeconomics, students can have a better understanding of how the economy works and how different factors can impact it, such as changes in price, income, and technology. In addition, the course teaches students how to use economic models and theories to analyze real-world scenarios, such as why the price of a product increases, how businesses decide on pricing and production decisions, and how government policies affect the economy. The concepts learned in Introduction to Microeconomics can also be applied to various fields, such as finance, marketing, and public policy. The course aims to provide students with a solid foundation in microeconomics, which can help them make informed decisions in their personal and professional lives.
Download or read book Economics written by and published by Pearson South Africa. This book was released on 1997 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book covers the foundations of economics, including micro- and macroeconomics, international trade and exchange rate systems.
