Economic Theories of Product Differentiation

Jean J. Gabszewicz

$176.95 $141.94

Hardback

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English

Springer International Publishing AG
30 August 2025

Economic theory & philosophy; Microeconomics; Economics of industrial organisation; Political economy

Series: Classroom Companion: Economics

This book provides a comprehensive exploration of product differentiation, blending insights from industrial organization, spatial economics, and game theory. In modern economies, nearly every product—from consumer electronics to household goods—comes in multiple variants, reflecting firms' strategic efforts to differentiate their offerings. But why do firms differentiate their products? How do they set prices for these variants? And does this process lead to an efficient market outcome?

It examines both horizontal and vertical differentiation, investigating how firms compete not only on price but also on product characteristics such as location, quality, and perceived value. Special attention is given to the role of network effects, industry structure, and monopolistic competition, shedding light on how differentiation influences market dynamics.

Key topics include:

The historical evolution of product differentiation theories and recent advances in the field. The spatial metaphor of a differentiated industry and the structure of demand. Horizontal differentiation models, including Hotelling’s framework and political science analogies. Vertical differentiation and the role of quality, production costs, and regulatory standards. The impact of network effects on pricing, market equilibria, and two-sided markets. Monopolistic competition and its implications for excess capacity and market efficiency.

With rigorous theoretical models and real-world applications, this book is essential reading for economists, researchers, and students seeking to understand the fundamental mechanisms shaping modern industrial competition.

By: Jean J. Gabszewicz
Imprint: Springer International Publishing AG
Country of Publication: Switzerland
Dimensions: Height: 235mm, Width: 155mm,
ISBN: 9783031955624
ISBN 10: 3031955625
Series: Classroom Companion: Economics
Pages: 117
Publication Date: 30 August 2025
Audience: Professional and scholarly , Undergraduate
Format: Hardback
Publisher's Status: Active

Jean J. Gabszewicz is Professor Emeritus specializing in microeconomics, with a focus on mathematical economics, imperfect competition, and industrial economics. He has authored numerous scholarly articles published in leading scientific journals, contributing significantly to the field.

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Economic Theories of Product Differentiation

Jean J. Gabszewicz

$176.95 $141.94

Hardback

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