The Max‐Min‐Min Principle of Product Differentiation

The Max-Min Principle of Product Differentiation: An Experimental Analysis

Theoretical models of multidimensional product differentiation predict that in duopoly firms differentiate maximally along one dimension and minimally along the other dimensions. We experimentally reproduce a market in which firms can differentiate their products along two horizontal dimensions. The main result is that subjects do not differentiate their products and locate near the center cons...

The Max-Min-Min Principle of Product Differentiation

We analyze two and three-dimensional variants of Hotelling’s model of differentiated products. In our setup, consumers can place different importance on each product attribute; this is measured by a weight in the disutility of distance in each dimension. Two firms play a two-stage game; they choose locations in stage 1 and prices in stage 2. We seek subgame-perfect equilibria. We find that all ...

Product Differentiation

The wreath product principle for ordered semigroups

Straubing’s wreath product principle provides a description of the languages recognized by the wreath product of two monoids. A similar principle for ordered semigroups is given in this paper. Applications to language theory extend standard results of the theory of varieties to positive varieties. They include a characterization of positive locally testable languages and syntactic descriptions ...

The Study of the Effect of Diversification Strategy, Cost Leader-ship Strategies and Product Differentiation on Business Unit Value

Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. The indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...