Product differentiation, collusion and standardization

This thesis analyzes why products become increasingly heterogenous in both their physical and qualitative appearances in the modern market economy. Among the important causes, competition from outside goods, non-uniform but concentrated consumer distributions, and competition and cooperation, are studied for the demonstration of their economic implications. The applications are twofold. First, there are the incentives of durable-goods producers to tie their aftermarkets with their primary markets, and the social consequences of that action. Second, there are the international trade policies of standardization. The analysis focuses on whether a domestic durable-goods producer, being a quality follower and incumbent, will agree on standardizing its products with a foreign durable-goods producer, under international competition and government protection.