Special Report on
Product differentiation / Economics
Product differentiation / Economics - Trends
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ffered under different brands by competing firms, products fulfilling the same need typically do not have identical features. The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum. Within firms, product differentiation is the way multi-product firms build their own supplied products' range. At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation . ...
on part of Bruce Bartlett's excellent chapter, "The Rise and Fall of Supply-Side Economics," in his book, The New American Economy . I promised to get to the fall part. First, though, there's more interesting content on the "rise" that gives context to the "fall" part. On deadweight loss from the the tax system, he cites work by Marty Feldstein and Ian Parry that finds a 30+ percent deadweight loss. On taxation more generally, he documents the increasing consensus among tax economists in favor of lower marginal tax rates, elimination of special tax ... Read More
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