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Niche market or mass market?

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  • Ivanov, Maxim

Abstract

The definition of a niche or a mass market is based on the ranking of two variables: the monopoly price and the product mean value. We characterize properties of the demand function that determine this ranking without calculation of the variables.

Suggested Citation

  • Ivanov, Maxim, 2009. "Niche market or mass market?," Economics Letters, Elsevier, vol. 105(3), pages 217-220, December.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:3:p:217-220
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    References listed on IDEAS

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    1. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
    2. Lewis, Tracy R & Sappington, David E M, 1994. "Supplying Information to Facilitate Price Discrimination," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 309-327, May.
    3. van den Berg, Gerard J., 2007. "On the uniqueness of optimal prices set by monopolistic sellers," Journal of Econometrics, Elsevier, vol. 141(2), pages 482-491, December.
    4. Dirk Bergemann & Juuso Välimäki, 2006. "Dynamic Pricing of New Experience Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 713-743, August.
    5. Justin P. Johnson & David P. Myatt, 2006. "On the Simple Economics of Advertising, Marketing, and Product Design," American Economic Review, American Economic Association, vol. 96(3), pages 756-784, June.
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    Cited by:

    1. Alexei Parahonyak & Nick Vikander, 2024. "Strategic Use of Product Delays to Shape Word-of-Mouth Communication," Economics Series Working Papers 1032, University of Oxford, Department of Economics.
    2. Zhuoqiong Chen & Christopher Stanton & Catherine Thomas, 2024. "Information Spillovers in Experience Goods Competition," Management Science, INFORMS, vol. 70(6), pages 3923-3950, June.
    3. Thomas, Catherine & Chen, Zhuoqiong (Charlie) & Stanton, Christopher T., 2020. "Information Spillovers in Experience Goods Competition," CEPR Discussion Papers 15255, C.E.P.R. Discussion Papers.
    4. Wang, Chengsi, 2011. "Informative Advertising, Consumer Search and Transparency Policy," MPRA Paper 34977, University Library of Munich, Germany.
    5. Maxim Ivanov, 2013. "Information revelation in competitive markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 337-365, January.
    6. Chen, Zhuoqiong & Stanton, Christopher & Thomas, Catherine, 2024. "Information spillovers in experience goods competition," LSE Research Online Documents on Economics 120790, London School of Economics and Political Science, LSE Library.

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    Keywords

    Markets Monopoly Price;

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