Mass customization in an endogenous-timing game with vertical differentiation

C-Tier
Journal: Economic Modeling
Year: 2013
Volume: 33
Issue: C
Pages: 164-173

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study mass customization in a duopoly game in which the firms' products have different qualities. Whether customization choices are made simultaneously or sequentially is endogenously determined. Specifically, the customization stage of the game involves two periods. Each firm either selects its product type in period 1 or postpones this decision to period 2. We show that customization by one or both firms occurs only if the quality difference is sufficiently large. Flexibility of timing in the customization stage sometimes enables the firms to achieve an outcome that is Pareto superior to that if they were constrained to simultaneous customization choices. Although the high quality firm is more likely to customize, in some circumstances the low quality firm can obtain an advantage by becoming the first and only firm to adopt customization.

Technical Details

RePEc Handle
repec:eee:ecmode:v:33:y:2013:i:c:p:164-173
Journal Field
General
Author Count
2
Added to Database
2026-01-25