Munich Personal RePEc Archive

Product Relocation and Resistance to Change

Selim, Tarek (2006): Product Relocation and Resistance to Change. Published in: Business Review of Cambridge , Vol. 5, No. 1 (September 2006)

[thumbnail of MPRA_paper_119507.pdf]

Download (164kB) | Preview


This paper considers a duopoly market characterization where demand is horizontally differentiated by taste while firms vertically differentiate their products based on quality location. However, firms are able to relocate their product offerings based on changing consumer taste. In general, it is found that a “resistance to change” exists such that firms dislike quality relocation and prefer stable preferences in quality. Yet, a relative change in horizontal preferences may result in wider quality spreads in the market through vertical quality relocations, even though the resistance to change argument may still hold good.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.