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On The Long‐Run Effects Of Fashion

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  • LUIS ARAUJO
  • RAOUL MINETTI

Abstract

We investigate the long‐run dynamic interaction between fashion (brand loyalty) and industry structure. We analyze how this interaction affects the importance of fashion in the market for a product in the different stages of its life and characterize conditions under which fashion loses or preserves its relevance over time. The model can explain why some products survive fashion changes. (JEL D21, L0)

Suggested Citation

  • Luis Araujo & Raoul Minetti, 2007. "On The Long‐Run Effects Of Fashion," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 756-769, October.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:4:p:756-769
    DOI: 10.1111/j.1465-7295.2007.00050.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L0 - Industrial Organization - - General

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