This essay provides a definition of horizontal product differentiation and a short description of its implications for Law and Economics, as the degree of product differentiation affects the degree of competition and therefore the level of prices. A short revision of the literature on horizontal product differentiation is performed. The aim of the literature is to predict the number of varieties or the degree of differentiation (when the number of varieties is fixed) in an industry. Different works find different solutions to this problem.
Product Differentiation Transportation Cost Market Power Price Competition Perfect Competition
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.
Bowley A (1924) The mathematical groundwork of economics. Oxford University Press, OxfordGoogle Scholar
Chamberlin E (1933) The theory of monopolistic competition. Harvard University Press, Cambridge, MAGoogle Scholar
d’Aspremont C, Gabszewicz JJ, Thisse JF (1979) On Hotelling’s ‘stability in competition’. Econometrica 47:1145–1150CrossRefGoogle Scholar
Eaton B, Lipsey R (1975) The principle of minimum differentiation reconsidered: some new developments in the theory of spatial competition. Rev Econ Stud 42:27–49CrossRefGoogle Scholar
Economides N (1984) The principle of minimum differentiation revisited. Eur Econ Rev 24:345–368CrossRefGoogle Scholar
Economides N (1986) Nash equilibrium in duopoly with products defined by two characteristics. Rand J Econ 17:431–439CrossRefGoogle Scholar