<p>Maybe I am going wrong here, but to me this sounds a lot like the &quot;love for variety&quot; in monopolistic competition trade models based on <a href="https://www.jstor.org/stable/1831401" rel="nofollow noreferrer">Dixit and Stiglitz, 1977</a>.</p>

CC BY-SA 4.0
2022-04-21T08:36:01.470Z
2022-04-25T10:19:43.320Z
2022-04-25T10:19:43.320Z
Papayapap
<p>Nothing explicit, but I think that there is no real need for a special consumer theory...</p>

<p>If we see diversity as similar yet not identical products, for example red and yellow shirts, then for the theory to hold, you should have specific demands for yellow shirts and red shirts</p>

<p>We touch marketing basics, but this is the core element of differentiation:
Markets split into sub-markets until an imperfectly imitable product is being made, then a premium can be collected on
A premium labeled red shirt for example</p>

CC BY-SA 4.0
2018-09-06T18:21:03.413Z
2018-09-06T18:21:03.413Z
Guy Louzon
<p>Economies of scope captures the idea of having efficiency in variety. I've come across this idea only in producer theory to capture the idea that companies may benefit from their ability to reduce cost of production through horizontal or vertical integration.</p>

<p>Quoting Micheal Carter from his book Foundations of Mathematical Economics,</p>

<blockquote>
  <p>The production technology displays economies of joint production or economies of scope at y  y1; y2; . . . ; ym
  if the total cost of producing all the outputs separately is greater than the cost of producing the outputs jointly</p>
</blockquote>

<p>Is there a consumer theory equivalent of the idea of economies of scope?</p>

CC BY-SA 4.0
2018-08-28T11:25:26.900Z
It's not an exact equivalent, but complementary consumption goods are a reasonable analogue.
Theoretical Economist
<microeconomics><consumer-theory>
Consumer Utility Maximization equivalent of economies of scope
Isaac
# Consumer Utility Maximization equivalent of economies of scope

(Asked by: username_0 on 2018-08-28)

Economies of scope captures the idea of having efficiency in variety. I've come across this idea only in producer theory to capture the idea that companies may benefit from their ability to reduce cost of production through horizontal or vertical integration.

Quoting Micheal Carter from his book Foundations of Mathematical Economics,

> The production technology displays economies of joint production or economies of scope at y y1; y2; . . . ; ym
> if the total cost of producing all the outputs separately is greater than the cost of producing the outputs jointly

Is there a consumer theory equivalent of the idea of economies of scope?

**Tags:** microeconomics, consumer-theory

> **Comments:**
> **username_1**: It's not an exact equivalent, but complementary consumption goods are a reasonable analogue.  

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## 2 answers

### Answer by username_2 on 2022-04-21. Score: 1

Maybe I am going wrong here, but to me this sounds a lot like the "love for variety" in monopolistic competition trade models based on [Dixit and Stiglitz, 1977](https://www.jstor.org/stable/1831401).


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### Answer by username_3 on 2018-09-06. Score: 0

Nothing explicit, but I think that there is no real need for a special consumer theory...

If we see diversity as similar yet not identical products, for example red and yellow shirts, then for the theory to hold, you should have specific demands for yellow shirts and red shirts

We touch marketing basics, but this is the core element of differentiation:
Markets split into sub-markets until an imperfectly imitable product is being made, then a premium can be collected on
A premium labeled red shirt for example


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