Demand for customized products, production flexibility, and price competition
Abstract: "The authors examine markets where, in addition to production of standard (core) products, mass customization is technologically feasible. They compare a setting where a monopolist provides both standard and custom goods to a setting where...
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Abstract: "The authors examine markets where, in addition to production of standard (core) products, mass customization is technologically feasible. They compare a setting where a monopolist provides both standard and custom goods to a setting where an entrant joins the custom market, and find customers' tastes affect the social desirability of entry. The entrant is unconcerned about the impact of his custom production on the incumbent's core product market and in some cases may supply more custom products than is socially desirable. In contrast to previous literature, we show that increased variability of demand may lead to a reduction in investment in flexible production technologies." (author's abstract)
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