Access

You are not currently logged in.

Access JSTOR through your library or other institution:

login

Log in through your institution.

Journal Article

Design Innovation and Fashion Cycles

Wolfgang Pesendorfer
The American Economic Review
Vol. 85, No. 4 (Sep., 1995), pp. 771-792
Stable URL: http://www.jstor.org/stable/2118231
Page Count: 22
Were these topics helpful?
See something inaccurate? Let us know!

Select the topics that are inaccurate.

Cancel
  • Download ($10.00)
  • Subscribe ($19.50)
  • Add to My Lists
  • Cite this Item
Design Innovation and Fashion Cycles
Preview not available

Abstract

A model of fashion cycles is developed in which designs are used as a signaling device in a "dating game." A monopolist periodically creates a new design. Over time the price of the design falls as it spreads across the population. Once sufficiently many consumers own the design it is profitable to create a new design and thereby render the old design obsolete. The paper gives conditions under which all consumers would be better off by banning the use of fashion. Competition among designers may lead to less frequent changes in fashion and to higher prices than monopoly. (JEL D40, L10)

Page Thumbnails

  • Thumbnail: Page 
771
    771
  • Thumbnail: Page 
772
    772
  • Thumbnail: Page 
773
    773
  • Thumbnail: Page 
774
    774
  • Thumbnail: Page 
775
    775
  • Thumbnail: Page 
776
    776
  • Thumbnail: Page 
777
    777
  • Thumbnail: Page 
778
    778
  • Thumbnail: Page 
779
    779
  • Thumbnail: Page 
780
    780
  • Thumbnail: Page 
781
    781
  • Thumbnail: Page 
782
    782
  • Thumbnail: Page 
783
    783
  • Thumbnail: Page 
784
    784
  • Thumbnail: Page 
785
    785
  • Thumbnail: Page 
786
    786
  • Thumbnail: Page 
787
    787
  • Thumbnail: Page 
788
    788
  • Thumbnail: Page 
789
    789
  • Thumbnail: Page 
790
    790
  • Thumbnail: Page 
791
    791
  • Thumbnail: Page 
792
    792