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

Bar-Isaac, H., Caruana, G. & Cuñat, V.ORCID logo (2011). Locating inside the Salop circle: demand rotations in a micro-founded model. Department of Finance, London School of Economics and Political Science.
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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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