In this paper we develop a stochastic (first order Markovian) consumer choice model that represents variety seeking behaviour and we investigate the practical implications of this model for optimal product positioning relative to a zero order model that does not incorporate variety seeking. We show
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On the space optimizing effect of eliminating single productions fromLRparsers
β Scribed by Eljas Soisalon-Soininen
- Publisher
- Springer-Verlag
- Year
- 1980
- Tongue
- English
- Weight
- 997 KB
- Volume
- 14
- Category
- Article
- ISSN
- 0001-5903
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## Abstract Assume that the spot price has a skewβnormal distribution. This study investigates the effect of skewness on optimal production and hedging decisions. It is shown that skewness has no effect on the optimal production level but induces the firm to become more active in futures trading. Β©
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