Endogenous Product Design: A Linear Demand Approach
Fuente:
arXiv
Saved in:
| Main Author: | |
|---|---|
| Format: | Preprint |
| Published: |
2026
|
| Subjects: | |
| Online Access: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1866914453182742528 |
|---|---|
| author | Rodrigues, Afonso |
| author_facet | Rodrigues, Afonso |
| contents | This paper introduces a novel characteristics-based specification for linear demand to investigate endogenous product design. Characteristics are allowed to affect both consumers' product valuations and to what extent these compete. I demonstrate how such a specification can help linear demand deliver fresh insights in how firms may optimally design existing goods, as well as predict demand for new products. The framework is novel in its broad applicability to settings with any finite number of goods, firms, and product characteristics, with both vertical and horizontal differentiation across different market structures, and under asymmetry. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2602_02833 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Endogenous Product Design: A Linear Demand Approach Rodrigues, Afonso Theoretical Economics This paper introduces a novel characteristics-based specification for linear demand to investigate endogenous product design. Characteristics are allowed to affect both consumers' product valuations and to what extent these compete. I demonstrate how such a specification can help linear demand deliver fresh insights in how firms may optimally design existing goods, as well as predict demand for new products. The framework is novel in its broad applicability to settings with any finite number of goods, firms, and product characteristics, with both vertical and horizontal differentiation across different market structures, and under asymmetry. |
| title | Endogenous Product Design: A Linear Demand Approach |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2602.02833 |